Beta Energy Corp. announced that it has entered into a participation agreement with a private British Columbia company ("DevCo") to participate in a drilling program within the Foothills region of Alberta. The Participation Agreement covers the drilling of an option well (the "Option Well") in the Block 3 lands located in the Alberta foothills (the "Block 3 Lands") pursuant to a farmout agreement entered into between Kaden Energy Ltd. ("Kaden") and DevCo (the "Farmout Agreement").

DevCo will act as operator under the Participation Agreement, with Beta providing DevCo with a deposit of $1,000,000 to be used solely to fund the costs of the Option Well pursuant to the Farmout Agreement. In addition, Beta will assume responsibility for certain obligations and cash payments required to be made by DevCo under the Farmout Agreement. Provided the parties have fulfilled their obligations with respect to the Option Well under the Farmout Agreement, the Company has the right to earn a 100% working interest in part of the Block 3 Lands, subject to the obligations and earning provisions outlined in the Farmout Agreement, including an overriding royalty granted in favor of Kaden.

Once earning has occurred pursuant to the Farmout Agreement, it is expected that the Company and Kaden will enter into a retroactive joint operating agreement to replace the Participation Agreement.