Odyssey Petroleum Corp.
TSX VENTURE : ODE

Odyssey Petroleum Corp.

January 23, 2007 13:04 ET

Odyssey Petroleum Increases Production by 20% in Fourth Quarter of 2006

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 23, 2007) - Odyssey Petroleum Corp. (TSX VENTURE:ODE) (the "Company" or "ODE") - Mr. Joe DeVries reports that the Company has made significant progress with its oil and gas development programs in the United States. The following summarizes activities:

Fourth Quarter Operational Update:

The Company produced approximately 38,450 gross barrels of oil equivalents during the quarter ended December 31, 2006, an increase of 20% over the quarter ended September 30, 2006 (32,100 BOES). The gross production for all properties was calculated based on the production reports for the period, and all gas production was converted to Barrels of Oil equivalents based on a ratio of 6 MCF to 1bbl. The reader should be cautioned that the BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6MCF: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

To take advantage of the current success of the recently completed re-entry program, the Company is pleased to announce that it has entered into negotiations for additional debenture subscriptions for a total of US$1,500,000 in funds from private sources, which will be utilized to re-enter and re-establish production in four wells located in ODE's Mississippi fields. Under the terms of the debenture offering, the debenture holders will contribute 100% of the necessary funds in consideration of the receipt of 40% of net revenues (after royalties and operating expenses) until 100% of their funds are recovered; at which time they will receive 20% of the net revenues (after royalties and operating expenses) from these four wells for the life of the wells. The Company is guaranteeing the debenture holders a minimum 10% annual return for ten years. Using US$50 for the price of a barrel of oil, the four wells have the potential of returning over US$37,500,000 in future gross income to the participants and mineral owners.

The Company will continue to employ two work-over rigs on a full-time basis in order to not only maintain current production but to also target and re-enter these other previously abandoned wells in its Mississippi fields where new production might be acquired. Current oil prices and new technology for locating bypassed oil/gas accumulations makes the re-entry of wells already drilled and cased profitable. With 30 wells currently producing and another 20 or more previously drilled wells scheduled for re-entry and work-over, ODE expects to continue to increase its revenue base while holding valuable leases by production on which it plans to drill new wells. Additionally, the Company has, in the past two years, developed its own production capabilities. With a staff of approximately 20 employees in the field, the Company staffs one leased work2 over rig, employs another contract rig, and does its own roustabout work, hauling, heavy equipment work and gauging of wells.

About Odyssey Petroleum Corp.

Odyssey Petroleum Corp. is a Canadian based junior oil and gas company traded publicly under the symbol ODE on the TSX-V Exchange. The Company holds assets of approximately $34,500,000 in five majority controlled oil and gas fields located in the States of Louisiana and Mississippi, U.S.A. The Company's mission is the discovery and development of economic oil and gas through the exploration of high quality projects located primarily in the Southeastern United States. Odyssey Petroleum Corp.'s website is www.odysseypetroleum.com.

ON BEHALF OF THE BOARD

Joe DeVries, Chief Executive Officer

Forward-Looking Statements:

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in ODE's periodic filings with Canadian Securities Regulators. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. ODE does not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information