NAPS Napster Group Plc

RNS No 5908t
AVIVA PETROLEUM INC.
5th March 1999


AVIVA PETROLEUM TO MERGE OPERATING SUBSIDIARY INTO SHARPE RESOURCES

Talks In Progress Over Potential European Focus For Debt-Free Aviva

DALLAS, TEXAS, March 4th, 1999 . . . . The Chief Executives of Aviva Petroleum
Inc. (Aviva) (AMEX AVV / London Stock Exchange AVP) and Sharpe Resources
Corporation (Sharpe) (ME SHO / OTC - SHGPF) have signed a letter of intent to
merge the operations and net assets of Aviva America Inc., a wholly-owned
subsidiary of Aviva, into Sharpe.  Both companies have operating assets in the
shallow waters of the Gulf of Mexico.  Sharpe has additional oil and gas
properties onshore U.S. and Aviva America has oil production in Colombia and
exploration prospects in Papua New Guinea.  This will be a stock transaction,
whereby Aviva shareholders will retain their Aviva shares and receive one new
Sharpe Common Share for each six Aviva Common Shares held.  The transaction
will require negotiation and execution of a definitive merger agreement
approved by the Boards of Directors of both parties and the approvals of the
shareholders of each Company.  The transaction will also be subject to the
refinancing, extension and increase of Aviva America's current $15 million
bank credit facility.

On a post-merger basis, Sharpe will have approximately 39 million shares
issued and outstanding, of which approximately 20% will be distributed to
current Aviva shareholders and 80% will be held by Sharpe shareholders.  Upon
completion of due diligence and definitive agreements, appropriate filings
will be made with U.S. and Canadian regulatory bodies, with the intention of
listing all Sharpe Common Shares on the Montreal Exchange and quoted on the
Over the Counter (OTC) NASD market in the United States.

Ron Suttill, CEO of Aviva, said that the synergy of the companies' Gulf Coast
assets, combined with Sharpe's recent success on its Matagorda property and
Aviva America's Colombian cash flow, will create an entity which, from initial
discussions with lenders, will be in a strong position to restructure existing
debt levels significantly, and move forward aggressively with a development
and acquisition program in the U.S. and Latin America.

Mr. Suttill commented that upon a successful completion of the proposed
transactions outlined today, Aviva Petroleum Inc. will become essentially
debt-free.  The Company is currently in discussions with a number of parties
relating to the acquisition of primarily European oil and gas properties by
purchase or merger.  These discussions would continue, said Mr. Suttill.

The Company was informed by the American Stock Exchange on October 27, 1998 of
its intention to delist Aviva's Depositary Shares.  The Company has appealed
this decision and has been informed that the Depositary Shares will continue
to trade during the appeal process.  No decision has been made with respect to
the appeal.

Safe Harbor for Forward-Looking Statements: Except for historical information
contained herein, the statements in this press release are forward-looking
statements that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.  Forward-looking statements involve
known and unknown risks and uncertainties which may cause the Company's actual
results in future periods to differ materially from forecasted results.  These
risks and uncertainties include, among other things, general economic
conditions, volatility of oil and gas prices, the impact of possible
geopolitical occurrences world-wide, imprecision of reserve estimates, changes
in laws and regulations, unforeseen engineering and mechanical or
technological difficulties in drilling or working-over wells, and other risks
described in the Company's Annual Report on Form 10-K and other filings with
the Securities and Exchange Commission.


Further Information:

Ron Suttill
Aviva Petroleum Inc.
001 214 691 3464

George Collie
GC International
0171 603 7765


END

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