April 6, 2004

News Release: C1 Energy Reports Second New Pool Discovery at Zama

(TSX: CTT) - C1 Energy is pleased to announce the successful drilling and completion operations of a second new pool oil discovery in its Zama Lake farm-in program with NAV Energy Trust. The well at 3-23-112-6W6M encountered 23 meters of net pay sections in a Keg River Reef at a depth of 1500 meters. The well has been flow- tested at rates in excess of 400 bbls/d of 39 degree oil with no significant water cut. C1 has earned a 60% working interest in the discovery well after paying 100% of the drilling costs. NAV Energy Trust has elected to participate in the completion and tie-in of the well and will retain a 40% interest. NAV Energy Trust will operate the production and tie-in the well to their existing facilities. C1 is currently completing the well and expects production to commence by next week at an initial rate between 150 to 300 bbls/d (gross) corresponding to 90 to 180 bbls/d net to C1's interest. The well will be production tested after tie-in to determine an appropriate long-term production rate within this range.

The 3-23 well is the second of two commitment wells that C1 has drilled in its previously announced farm-in agreement with NAV Energy Trust. The Zama Program included two wells this year, 3-23 and 8-15 (previously flow tested at 450 bbls/d), and a further two to three potential locations are planned for winter 2004/2005.

C1 has now completed its Q1/04 drilling program with successful operations in Gift Lake and Zama. The Q1/04 program included the drilling of 5 gross wells corresponding to 3.7 net wells. This program resulted in two oil wells at Zama and two gas wells at Gift as well as the tie-in of an additional gas well at Gift. All of these wells were exploratory in nature and have resulted in a significant increase in C1's medium to low risk drilling and prospect inventory.

As a result of the successful drilling program in the first quarter, C1 anticipates production additions will be greater than 400 boe/d from these operations. As such, C1 is anticipating production to exceed 800 boe/d when final completion and tie-in operations are finished at 3-23 in the second week of April, 2004.

C1 is currently projecting Q1 capital expenditures of approximately $9 Million related to these operations. The previous $7Million capital estimate for Q1&Q2/04 of has been increased to $9 Million as a result of the completion and tie-in of these successful wells. C1's management and Board of Directors will soon review the company's opportunities and capital budget for the remainder of the year.

C1 is a recently formed exploration company as a result of the Plan of Arrangement of Navigo. C1 currently has an inventory of approximately 50 drilling locations on an undeveloped land base of approximately 124,500 acres. C1 has exclusive access to an additional 168,000 acres of undeveloped land bringing the company's total undeveloped land inventory to 292,500 acres. C1 currently has approximately 17.8 million common shares outstanding and no debt.

Certain information set forth in this press release contains forward-looking statements. All statements other than historical fact contained herein are forward-looking statements, including, without limitation, statements regarding the future financial position, business strategy, production rates and plans and objectives of or involving C1 Energy Ltd. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond C1's control, including the impact of general economic conditions, industry conditions, governmental regulation, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. C1's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that C1 will derive there from. C1 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

C1 Energy Ltd Hugh Pattillo President &CEO (403) 218-3600 or C1 Energy Ltd Gary Lobb VP Finance &CFO (403) 218-3600 (403) 216-1572 (FAX)