Matrix acquires Whittier Field

Santa Barbara, CA

Matrix announces the pending acquisition of all interests in the Whittier Oil Field from Venoco located in Whittier, California. The field is producing 240 barrels of oil per day from 21 wells along with 180 mcf of gas per day. Matrix will operate the field and will acquire the field office for the facilities located in Whittier at the Honolulu Terrace production site. Matrix will acquire a net 400,000 barrels of oil to its ownership and will work with California-based Bonanza Creek Energy in a 50-50 % joint operating agreement to enhance production and optimize operations. Through its due diligence in the field Matrix has identified approximately 1 Million barrels of undeveloped oil reserves located in oil zones behind pipe in current producing wells or located in un-tapped zones between current producing wells. The total estimated field reserves to all interests are approximated at 2 Million barrels of oil and natural gas equivalent located in current wells as producing reserves and in un-tapped zones as undeveloped reserves based on current oil prices of 21 dollars WTI. The acquisition is expected to close in October, 2001. Matrix anticipates many years of benefit from the partnership with Bonanza Creek Energy which has producing assets in Colorado located in the DJ Basin. In addition Matrix looks forward to working with Mr. Silas Briones as a long-time Whittier resident and operator of the field to manage its field operations along with Matrix on goals to optimize improvements to the field.