www.stockhouse.ca 1/21/03 TORONTO, ONTARIO, Jan 21, 2003 (CCNMatthews via COMTEX) --

Denison Energy Inc. today issued an update on its operation and exploration activities during the fourth quarter of 2002.

The McClean uranium production facility was shut down on December 10, 2002 for vacations and routine annual maintenance after producing 6.1 million pounds of U3O8 in 2002, slightly over the budgeted production of 6.0 million pounds. Substantially all of the Company's share of production was sold under existing long-term contracts during the year. Sales this year are expected to be about 5% less than in 2002.

The McClean mill was restarted on schedule on January 6, 2003, with this year's U3O8 production budgeted at 6.0 million pounds from processing the ore in stockpiles from the previously mined-out Sue C and JEB pits.

No date has been set as yet for the hearing of the appeal filed by the CNSC and Cogema against the decision of the Trial Division of the Federal Court of Canada quashing the 1999 McClean operating license. The Federal Court of Appeal granted a stay of that decision in November and the McClean facility continues to operate normally under the four-year operating license issued in August 2001. Efforts to eliminate the uncertainty concerning the validity of the McClean operating license are continuing.

An 11,000 meter diamond drill program, involving in excess of 60 holes, is underway as part of the delineation of the Caribou Lake uranium discovery announced last winter. The program is designed to test for extensions of known mineralization and evaluate other nearby targets in this area, which is within 3 kilometers of the mined out Sue C pit. This year's exploration program is expected to be complete by the end of April.

The spot price for U3O8 climbed to US $10.20 in early January. We expect upward pressure through most of the year, but with significantly more volatility than last year, including periods of market weakness. While Denison does not sell on the spot market, the spot price affects the prices at which new long-term contracts can be obtained and reflects the tightening uranium supply where natural production has for several years totaled only between 50% and 60% of annual consumption.

The Company drilled or participated in the drilling of nine gross (7.14 net) oil and gas wells during the quarter of which four have been completed as gas wells and one as an oil producer. One gas well is still being evaluated.

Insufficient pipeline capacity in the area has so far prevented the three new Knappen gas wells from being put into production. However, some of the new gas will be on stream in early February. Efforts are continuing to obtain additional pipeline capacity to permit all of our gas wells to be operated at optimum rates in accordance with good oil and gas practice.

A fourth gas well, in which the Company has a 100% interest, is located in the Bow Island area in southeastern Alberta, and is expected to be put on production when pipeline capacity becomes available.

Our Lubicon well, located northwest of Edmonton, was completed as an oil producer in early December and has been producing at an initial rate of over 100 boepd. Additional offset drilling in this field is being assessed.

Our recent Skiff acquisition of 12.5% to 100% working interests in an oil property in the Conrad area in southeastern Alberta has been successfully incorporated into Denison's production operations. Production is increasing and plans are well underway to reinitiate pressure maintenance and thereby more effectively exploit this field.

Our Countess field remains our principal producer with current production of approximately 400 boepd.

Denison's year-end exit production rate was approximately 650 boepd (about 80% oil) with an additional 350 boepd of gas production shut- in awaiting pipeline capacity. The Company plans on drilling several additional exploration wells during the current quarter utilizing the $2.5 million remaining from the $5 million flow-through share issue that closed in the third quarter of 2002.

As a result of increasing oil and gas production combined with an active exploration program, Denison has made a number of key additions to our staff in Calgary. This month, Leif Snethun joined Denison as Manager, Exploration and Joe Stepaniuk as Manager, Oil and Gas Production and Facilities. They are both valuable additions to the team of Tony Boogmans, Terry O'Connor and Kevin Ryczak. Steve Ewaskiw, our Vice President, Oil and Gas Operations, resigned at the end of 2002 for personal reasons but continues to make his services available to the Company on a consulting basis.

Oil and gas prices have increased substantially in the later part of the year as a result of war fears in Iraq, labour and production problems in Venezuela, the recent cold weather throughout North America and falling inventories.

The news release contains forward-looking information with respect to Denison's operations and future financial results. Actual results may differ from expected results for a variety of reasons including factors discussed in the Company's Management Discussion and Analysis section of its 2001 Annual Report.

Denison Energy Inc. E. Peter Farmer President and Chief Executive Officer (416) 979-1991 Extension 231 Website: www.denisonenergy.com

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www.theage.com.au January 22 2003 By Angela Macdonald-Smith Singapore

Crude oil futures rose in New York after the United Kingdom ordered 26,000 troops to the Persian Gulf in preparation for a possible war and, along with the United States, dismissed new pledges by Iraq to cooperate with arms inspectors.

Oil contracts traded in London rose to near a two-year high after Iraq declared more illegal warheads and Britain said it would send more than 25 per cent of its army, tanks and attack helicopters to the Gulf.

"Sending a quarter of the British army is another clear signal" that the US and UK are preparing for war, said Simon Games-Thomas, an energy analyst in Sydney.

Crude oil for March delivery rose as much as 19 cents, or 0.6 per cent, to $US33.15 a barrel in after-hours electronic trading on the NY Mercantile Exchange.

On Friday, the February contract rose 25 US cents, or 0.7 per cent, to $US33.91 a barrel on the NYME, the highest closing price for a contract closest to delivery since November 29, 2000.    advertisement       advertisement

The exchange was closed yesterday for the Martin Luther King Day holiday.

The March Brent crude-oil futures contract gained 11 US cents to $US30.65 a barrel in London trading on Monday.

"The oil market is concerned that the weapons inspectors will make further discoveries in Iraq," said Steve Turner, an oil analyst at Commerzbank Securities. "That's supporting prices."

Iraqi officials and the United Nation's chief arms inspectors issued a statement on Monday saying Saddam Hussein's regime would search for chemical weapons similar to the 11 empty warheads found last week and answer questions raised by its weapons declaration, while foreign ministers of China, France and Germany said they wanted to give Iraq more time to comply.

Crude oil futures in New York rose more than $US11 a barrel in 2002, and have added almost $US2 this year on concern the US is preparing to attack Iraq, which the Bush administration accuses of developing chemical, nuclear and biological weapons. The US has said Iraq may need to be disarmed by force.

Oil prices also have risen as a strike in Venezuela enters its eighth week, disrupting oil shipments from the country.

Venezuela's oil output has tripled this month as more fields have been activated, but is about one-third of normal output.

www.channelnewsasia.com First created : 21 January 2003 2051 hrs (SST) 1251 hrs (GMT) Last modified : 21 January 2003 2303 hrs (SST) 1503 hrs (GMT)

The Organization of Petroleum Exporting Countries may have to agree to a further production hike when it convenes on March 11 as markets have not responded to a decision by the cartel to boost output, said OPEC President Abdullah bin Hamad al-Attiyah on Tuesday.

"All options are open," he replied when asked if the Organization of Petroleum Exporting Countries could take further action to curb prices at a ministerial meeting in Vienna March 11.Advertisement

On Monday, oil prices climbed above US$30 a barrel in London, apparently indifferent to OPEC's decision in mid-January to increase production by 1.5 million barrels a day from next month.

The cartel's decision to raise production was a move taken to shore up market confidence in the face of international political tension.

"The problem is that the market is not receiving that," Mr Abdullah, who is also Qatar's energy and industry minister, told reporters following the inauguration outside Doha of a new petrochemical plant.

"The market is under a lot of political and psychological motivations, such as Venezuela and Iraq," he added.

Industry analysts have warned that war in Iraq and continuing labour unrest in Venezuela could deprive the global oil market of some five million barrels a day.

www.middle-east-online.com First Published 2003-01-21, Last Updated 2003-01-21 12:10:25

The oil market is under a lot of political and psychological motivations

OPEC President believes oil market will stabilize in coming months as oil prices climbing over $30/barrel.

DOHA - World oil markets have yet to respond to an OPEC decision to boost output and the cartel could therefore agree to a further production hike when it convenes March 11, OPEC President Abdullah bin Hamad al-Attiyah said Tuesday.

"All options are open," Attiyah said when asked if the Organization of Petroleum Exporting Countries could take further action to curb prices at a ministerial meeting in Vienna March 11.

Oil prices climbed above 30 dollars a barrel in London on Monday, apparently indifferent to OPEC's decision in mid-January to increase production by 1.5 million barrels a day from next month - a move taken to shore up market confidence in the face of international political tension.

"The problem is that the market is not receiving that," Attiyah, who is also Qatar's energy and industry minister, told reporters following the inauguration outside Doha of a new petrochemical plant.

"The market is under a lot of political and psychological motivations, such as Venezuela and Iraq."

Industry analysts have warned that war in Iraq and continuing labor unrest in Venezuela could deprive the global oil market of some five million barrels a day.

Attiyah, who stressed that OPEC is "watching the market very carefully," nonetheless added: "We believe it will stabilize in the coming months."

money.cnn.com January 21, 2003: 9:58 AM EST

LONDON (Reuters) - World oil prices hit two-year highs Tuesday as the United States urged the U.N. Security Council not to shirk difficult choices and a military buildup in the Gulf fueled speculation that war is looming.

U.S. light crude in electronic trade rose 44 cents to $34.35 a barrel, its highest since December 2000. London Brent blend added 37 cents to $31.02 a barrel.

Dealers said a seven-week-old general strike in Venezuela that is sapping oil exports and the killing in Kuwait of a U.S. Defense Department employee near a U.S. military base also helped pull prices higher.

"The markets are still very edgy with both Venezuela and Iraq remaining the key issues against a backdrop of increasing demand and falling inventory," said Australian-based independent oil analyst Simon Games-Thomas.

"Prices appear destined to trade higher given the current set of drivers and $35 beckons exorably in the short term," Games-Thomas said.

Secretary of State Colin Powell, addressing fellow Security Council members Monday, said "We must not shrink from our duties and our responsibilities when the material comes before us next week. We cannot be shocked into impotence because we are afraid of the difficult choices that are ahead of us."

Chief U.N. weapons inspector Hans Blix will deliver a major report on Iraqi weapons to the United Nations next Monday and the Security Council evaluates the report on Jan. 29.

Blix spoke to reporters in Athens on Monday after a two-day visit to Baghdad. "The Iraqis became aware that the world is disappointed with their declaration," he said of Iraq's 12,000 page dossier.

"They have to create confidence in the world that they don't have weapons of mass destruction."

Iraq said Monday it would offer the inspectors more help and would form its own teams to search for any banned weapons.

Blix said Baghdad had refused to allow U2 reconnaissance flights over its territory. "They put up a number of conditions that were not acceptable to us," he said.

Iraq wants to accompany the planes with its own aircraft, but would be prevented from doing so if the weapons inspectors flew to the north or south of the country because of no-fly zones patrolled by U.S. and British planes since 1991.

Britain said Monday it was mobilizing some 30,000 troops to join the tens of thousands of U.S. troops already in the Gulf. Venezuela strike in day 51

In Venezuela, foes of President Hugo Chavez extended a nationwide strike into the 51st day, aiming to force the leftist leader to resign and call immediate elections.

The strike has strangled oil supplies from the world's fifth-largest exporter, which accounts for about 13 percent of U.S. petroleum imports.

Exports of only 500,000 bpd, a fifth of normal flows, have cut U.S. commercial crude stockpiles close to 26-year lows.