SOURCE: Pepper Rock Resources Corp.

Pepper Rock Resources Corp.

February 12, 2010 15:13 ET

Pepper Rock Resources Comments on Outlook

CHICAGO, IL--(Marketwire - February 12, 2010) - Pepper Rock Resources Corp. (OTCBB: PEPR) (the "Company"), is optimistic about the production opportunities presented by its Canadian and West Texas Project ventures.

The Company, which was founded May 28, 2008, and with a project portfolio in Canada and Texas along with a strong Board of Advisors and Directors, is extremely pleased with the near term outlook.

Upon the acquisition of the petroleum related assets in Alberta, Canada that includes a 49% interest in a natural gas processing and compression facility; natural gas pipeline, additional infrastructure and certain lands associated to the infrastructure, the company is optimistic that this project may have the potential to contain over 8 BCF of natural gas. The Company also has the option to obtain the remaining 51% interest from the owner over a 2-year period.

Additionally, the recent joint venture agreement entered into with Oxalis Energy Group, Inc., illustrates the company's desire to further its corporate strategy to acquire proven non-producing reserves and develop them. An initial investment of $300,000.00 for Phase One is in progress to re-work two natural gas wells on a property in West Texas and to bring the gas production online. This project is in an area of enormous potential according to sector analysts with estimates of total potential valuation ranging from $285 million to $423 million based on recent geological reports of undeveloped reserves on the property. To meet its current obligations in hopes of meeting this goal, the company currently estimates it requires less than $5 million in additional investments.

Aggregating the well economics for the entire joint venture project gives a total view of the value to Pepper Rock. The Company plans to acquire interests in six wells in the near future and hopes to launch a 20 well drilling campaign to evaluate the effectiveness of the various technologies being considered. After that, a 180 well campaign is envisaged. The timing of the drilling campaign is assumed to be three years (60 wells/yr or 5 wells/mo) which is considered aggressive but not impractical in this region.

The Company believes that the final NPV should all wells complete successfully as currently projected by year four, is anticipated to represent a potential $320 million. The present value of this amount today, if discounted at 10%, would be $220 million.

Forward-Looking Statements

This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. Forward-looking statements involve risks and uncertainties. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the Company to be different from those expressed or implied. Certain statements in this release, and other written or oral statements made by the Company, including the use of the words "expect," "anticipate," "estimate," "project," "forecast," "outlook," "target," "objective," "plan," "goal," "pursue," "on track," and similar expressions, are "forward-looking statements" and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the company to be different from those expressed or implied. The Company assumes no obligation and does not intend to update these forward-looking statements.

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