Contact:
                                             Daniel Drum,
                                             Investor Relations
                                             Seven Seas Petroleum Inc.
                                             713-622-8218
FOR IMMEDIATE RELEASE


                      SEVEN SEAS PROVIDES OPERATIONS UPDATE


July 1,  2002 -  HOUSTON,  TEXAS -  Seven  Seas  Petroleum  Inc.  (AMEX:  "SEV")
announced  today  that it has  suspended  further  development  drilling  in the
Guaduas Oil Field pending a  reassessment  of recently  drilled  wells,  current
production data, and the results of planned  production  enhancement  efforts on
existing  wells.  Possible  modifications  to the development  drilling  program
include the  employment of horizontal  drilling  techniques and the selection of
different well locations.

     At the end of May,  the Company  commenced  gas  injection  operations  and
planned to proceed with reconfiguration of several electric submersible pumps in
an attempt to optimize  oil  production.  The Company is also now  contemplating
hydraulic  fracture  treatments on several of the existing wells.  The impact of
these operations may not be known for several months.

     The  Company is  presently  injecting  approximately  40 percent of planned
initial gas volumes.  Injection  levels should  increase upon  installation of a
high  pressure  compressor,  scheduled for delivery  later this month.  However,
dueDue to possible  gas  encroachment  in certain  parts of the  reservoir,  the
Company  now  believes  that  current  production  rates,  which  have  averaged
approximately  6,800  barrels of oil per day  (3,100 net to Seven  Seas) for the
month of June, may not be materially improved by gas injection.

     As a result of the  reduction in  production  rates and the  suspension  of
development  drilling,  Seven Seas does not believe that Guaduas Oil Field gross
production  will reach the targeted  18,000 to 25,000  barrels of oil per day by
the end of 2002.  The  Company is not  prepared to  estimate  future  production
levels until these reassessment efforts are completed.

El Segundo 5-N Update

     Additionally,  the Company  reported  that the El Segundo  5-N, the seventh
Guaduas Oil Field  development  well,  initially tested up to 500 barrels of oil
per day before being shut in for a forty-eight hour pressure build-up test.

Escuela 2 Update

     Seven  Seas  also  reported  that  the  Escuela  2  well  was  drilling  at
approximately  18,770 feet over the weekend when the  penetration  rate abruptly
fell to near zero.  Shortly  thereafter,  the well experienced  significant lost
circulation.  When  circulation  was  regained,  fine to medium grain  sandstone
cuttings were brought to the surface.  Although these  characteristics are often
indicative of a reservoir  formation,  it is premature to draw conclusions.  The
Company  does not know  whether  the well has  crossed  the  Cambao  fault  that
separates the overthrust and subthrust formations.

     To ensure the  integrity of the well bore,  the Company is currently in the
process  of  preparing  to run 7 inch  casing to total  depth and plans to drill
ahead  when the  casing  is in  place.  The  Company  does not  expect to resume
drilling for several days.

     "Based  on the  data  available,  we  believe  we  have  encountered  a new
formation,  but it is too early to know whether it is a reservoir, or whether we
have crossed the Cambao fault," stated Robert A. Hefner III,  Chairman and Chief
Executive  Officer  of Seven  Seas.  "We must  resume  drilling  to gather  more
information  and  will  issue  press  releases  about  material   developments,"
concluded Mr. Hefner.

     Seven Seas  Petroleum Inc. is an independent  oil and gas  exploration  and
production company operating in Colombia,  South America.  The Company's primary
emphasis  is on the  development  and  production  of the  Guaduas Oil Field and
exploration  of the  Subthrust  Dindal  Prospect,  both of which are  located in
Colombia's prolific Magdalena Basin.

Statements  regarding  anticipated  oil and gas production and other oil and gas
operating  activities,  including the costs and timing of those activities,  are
"forward  looking  statements"  within the meaning of the Securities  Litigation
Reform Act. The statements involve risks that could  significantly  impact Seven
Seas Petroleum Inc. These risks include, but are not limited to, adverse general
economic conditions,  operating hazards,  drilling risks, inherent uncertainties
in interpreting engineering and geologic data, competition, reduced availability
of  drilling  and other well  services,  fluctuations  in oil and gas prices and
prices for  drilling  and other well  services  and  government  regulation  and
foreign political risks, as well as other risks discussed in detail in the Seven
Seas Petroleum Inc.'s filings with the U.S. Securities and Exchange Commission.