SOURCE: Pilgrim Petroleum Corporation

October 17, 2007 10:28 ET

Pilgrim Petroleum Signs LOI for Sutton Farm Project, Wichita County, TX

DALLAS, TX--(Marketwire - October 17, 2007) - Pilgrim Petroleum Corporation (PINKSHEETS: PGPM) (FRANKFURT: PHV) today announced they signed a Letter of Intent ("LOI") to purchase 100% Working Interest and royalty interest in Sutton Farm Project located in Wichita County, Texas, covering approximately 146.7 acres, and situated along the eastern edge of the West (KMA) field, which has produced millions of barrels of oil from the KMA sand at 4,200' since the 1940s.

The interest in the Sutton Farm Project is generated by two deep penetrations in the West field that yielded commercial oil from deeper horizons. The Wichita Homestead #6 has yielded 33,000 barrels of oil from the Ellenburger at 5,330' and the Beverly Drive #1 has produced 47,000 barrels of oil from the Atokan Conglomerate at 5,280'. Both wells are still actively producing oil economically today.

The Letter of Intent includes provisions whereby the two parties will use their best efforts to move forward to negotiate, execute, and deliver a definitive purchase & sale agreement within 30-45 days from the signing of the LOI. Additional information will be forthcoming as it becomes available.

About Pilgrim Petroleum Corporation.

Pilgrim Petroleum Corporation (PINKSHEETS: PGPM) (FRANKFURT: PHV) is an independent oil and gas company based in Irving, Texas. The company is acquiring oil and gas leases, producing properties, mineral rights, and surface interests primary on marginal fields. Once acquired, the company intends to redevelop each property to maximize the income from each property by refurbishing and improving the existing production.

Forward-Looking Statements: The statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," and "seeking" and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements.

2007 Pilgrim Petroleum Corporation. The information herein is subject to change without notice. Pilgrim Petroleum Corporation shall not be liable for technical or editorial errors or omissions contained herein.

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