SOURCE: Pilgrim Petroleum Corporation

October 04, 2007 11:09 ET

Pilgrim Petroleum to Acquire Production and Acreage in Palo Duro Basin

DALLAS, TX--(Marketwire - October 4, 2007) - Pilgrim Petroleum Corporation (PINKSHEETS: PGPM) (FRANKFURT: PHV), an independent oil and gas exploration and production company, announced it has signed a Letter of Intent to acquire a 100% working interest in 1,395 acres on Archer and Wilbarger Counties in Texas. This property has a history of great production and has existing well bores available for reentry.

The Palo Duro Basin is located in the Texas Panhandle district and is bound on the north by the Amarillo-Wichita Uplift in Oklahoma, to the south by the Matador Arch-Permian Basin in West Texas. The Palo Duro Basin prospect, which is currently being evaluated for further development, has been compared to the Barnett Shale discovery. Barnett Shale is estimated to contain some 30 trillion cubic feet of natural gas. Management believes Palo Duro could prove to be one of the largest natural gas deposits in North America.

Rafael Pinedo, Pilgrim Petroleum CEO-President, said, "Each acquisition builds our natural energy reserve base. We will continue to acquire properties and bring our wells on line through out 2007 in order to increase our residual revenue." Currently, Pilgrim Petroleum has modest levels of production from this area and will start to use enhanced oil recovery techniques to boost additional production levels in the area.

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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