Benz Announces 60% Increase in Revenues and 82%Increase in Production.

HOUSTON--(BUSINESS WIRE)--Nov. 18, 1999--

Benz Energy Inc. (VSE:BZG) today announces that oil and gas revenues increased 60% to $5.3 million for the nine months ended Sept. 30, 1999, compared to the nine months ended Sept. 30, 1998. Net oil and gas production for the nine months to date

The revenue increase was generated despite realized natural gas prices for the nine-month to date period falling by 17% to $1.87 per MCF compared to the same period in 1998. The lower realized gas price was due to the forward sales of gas entered into as part of the production financing with Shell Capital at year-end 1998. The forward sales for periods after Sept. 30, 1999 were repurchased as part of the previously announced production financing in August 1999.

General and administrative expenses for the first nine months of 1999 declined 45% to $2.5 million compared to 1998, primarily due to reduced staff.

Overall, the Company posted a net loss of $9.3 million ($0.26 per share) for the nine months ended Sept. 30, 1999 compared to a net loss of $8.0 million ($0.25 per share) in the comparable period in 1998. The current net loss includes an extraordinary charge of $2.4 million, or $0.07 per share, for the early extinguishment of the Shell production financing and the exchange of $15.1 million principal amount of convertible debentures for convertible preferred stock, series II in the third quarter 1999.

For the third quarter of 1999, the Company averaged 10.3 MMCFED in net production at average prices of $1.99/MCF and $21.26/BO. Revenues increased by 5% from the prior quarter to $2.0 million and the Company generated positive cash flows from operations of $0.1 million compared to prior quarter cash flows of ($0.7) million. Preferred stock dividends of $1.1 million and extraordinary charges of $2.4 million resulted in a net loss to common shareholders of $4.7 million.

Most significant for the Company was the improvement in its financial position during the third quarter as working capital improved from ($41.2) million as at June 30, 1999, to $2.7 million as at Sept. 30, 1999. Approximately 95% of the debt of the Company now will mature in 2002 or later.

The Company is preparing to commence drilling its third development well in the Oakvale Dome Field in Mississippi to a proposed target depth of 16,750 feet utilizing information gathered in the drilling of previous wells. The reservoir targets are in a separate fault block from the Company's currently producing wells and are up dip from existing commercial wells. In addition, the well location is away from the salt overhang adjacent to the dome that caused mechanical problems in the Howell and Fortenberry development wells. The new well has been pre-funded by the Company's partner and the Company's development facility with Aquila Energy Capital Corporation. The Company is also reviewing the first well proposal in the Old Ocean project in Texas and anticipates commencing drilling within sixty days.

Benz Energy Inc. is an exploration and development company based in Houston, Texas, focused on natural gas in the U.S. Gulf Coast of Texas, Mississippi and Louisiana.

                           BENZ ENERGY INC.
                 Consolidated Statement of Operations
                             U.S. Dollars
                        (U.S. GAAP, Unaudited)

                                    Nine Months Ended
                                        Sept. 30,
                                --------------------------
                                   1999           1998
                                -----------    -----------

Petroleum Revenue                $5,277,582     $3,289,721

Direct Expenses:
  Lease operating expenses          606,159        624,202
  Depreciation, depletion
   and amortization               3,449,215      1,750,398
                                -----------    -----------
                                  4,055,374      2,374,600
                                -----------    -----------
                                  1,222,208        915,121
                                -----------    -----------
Other Expenses (Income):
  General and administrative
   expenses                       2,500,947      4,531,320
  Interest expense                2,741,670      3,458,226
  Debt issuance costs             1,254,335        764,297
  Loss on sale or disposal of
   assets                           330,619         16,744
  Interest and other income        (260,789)      (486,856)
                                -----------    -----------
                                  6,566,782      8,283,731
                                -----------    -----------
Net loss before preferred
 dividends and
 extraordinary item              (5,344,574)    (7,368,610)
  Preferred dividends            (1,540,914)      (631,945)
                                -----------    -----------
Net loss before
 extraordinary loss              (6,885,488)    (8,000,555)
Extraordinary loss on
 the early extinguishment
 of debt                         (2,384,931)          --
                                -----------    -----------
Net loss applicable to
 common stockholders            $(9,270,419)   $(8,000,555)
                                ===========    ===========
Basic Loss Per Share:
  Loss before
   extraordinary item                $(0.19)        $(0.25)
  Extraordinary loss                  (0.07)          --
                                -----------    -----------
  Net loss                           $(0.26)        $(0.25)
                                ===========    ===========
Diluted Loss Per Share:
  Loss before
   extraordinary item                $(0.19)        $(0.25)
  Extraordinary loss                  (0.07)          --
                                -----------    -----------
  Net loss                           $(0.26)        $(0.25)
                                ===========    ===========
Operating Statistics
--------------------
Gas Production, MCFGD                 8,874          4,929
Oil Production, BOD                     190             98
  Equivalent (6:1) MCFED             10,016          5,517

Average Gas Price US$                 $1.87          $2.24
Average Oil Price US$                $14.40         $10.52


                                             As of           As of
                                           Sept. 30,        Dec. 31,
Selected Balance Sheet Items                 1999            1998
----------------------------------------------------------------------
(U.S. $ in millions)                        (Unaudited, U.S. GAAP)

Cash & Equivalents                           $1.04           $2.32
Current Assets, excluding cash &
 equivalents                                  6.34            6.69
Net PP&E                                     87.43           79.41
Total Assets                                100.41           95.24

Current Liabilities                           4.67           36.50
Long-term Debt                               61.02           42.26
Redeemable Preferred Stock                   13.89            9.49
Shareholders' Equity                         20.83            6.99

Cautionary Statement as to Forward-Looking Information

Investors are cautioned that the preceding statements of the Company include certain estimates, assumptions and other forward-looking information ("forward-looking statements (information)"). The actual future performance, developments and/or results of the Company may differ materially from any or all of the forward-looking statements (information), which include current expectations, estimates and projections, in all or part attributable to general economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the Company, including rates of inflation, natural gas prices, reserve estimates, drilling risks, future production of oil and gas, changes in future costs and expenses related to oil and gas activities and hedging, financing availability and other risks related to financial activities.

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.