Grey Wolf Exploration Inc.
TSX : GWE

Grey Wolf Exploration Inc.

January 14, 2008 16:32 ET

Grey Wolf Spuds Petitot Exploratory Well and Announces Capital Program

CALGARY, ALBERTA--(Marketwire - Jan. 14, 2008) -

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Grey Wolf Exploration Inc. ("Grey Wolf") (TSX:GWE) today announced that on Sunday, January 13, 2008, it spudded its first well in its newly created exploration play in the Petitot area located in northwestern Alberta. The well will be drilled horizontally, targeting natural gas in the Slave Point formation. Grey Wolf plans to drill two additional exploratory wells in the area this winter season, the first of which is scheduled to spud within the next two weeks. Four additional exploratory wells are planned for fiscal 2008, two in Valhalla, and two in Widewater. Seismic programs in Petitot and Valhalla complete our exploration program for 2008.

Bob Watson, Chairman and Chief Executive Officer of Grey Wolf stated "As previously reported, the Company has had significant shut-in gas reserves in the Petitot area for a number of years, with additional exploratory and development targets on its large land position. If successful, the 2008 exploratory wells could lead to a significant development program within the area in the coming years."

In addition, the Company announced that its Board of Directors has approved a total 2008 capital budget of $35 million, including the $20 million exploration program. The remaining $15 million will be largely invested in continuing the exploitation of its Pouce Coupe properties. Horizontal drilling in Doig and Montney reservoirs is being closely investigated.

Grey Wolf is an Alberta-based oil and natural gas company involved in the development and production of natural gas and crude oil in the Western Canadian Sedimentary Basin. It's common shares trade on the Toronto Stock Exchange under the symbol "GWE".

Forward-Looking Statements - Certain statements contained in this Annual Information Form constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this Annual Information Form should not be unduly relied upon. These statements speak only as of the date of this Annual Information Form. We assume no obligation to revise or update these statements except as required pursuant to applicable securities laws.

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