Powder River Basin Gas Corp.
OTC Bulletin Board : PRVB

Powder River Basin Gas Corp.

May 31, 2006 07:00 ET

Powder River Continues to Increase Holdings, Purchases Additional Texas Property

CALGARY, ALBERTA--(CCNMatthews - May 31, 2006) - Powder River Basin Gas Corp. (OTCBB:PRVB), a revenue generating producer, acquirer and marketer of crude oil and natural gas properties, today announced it has completed the purchase of approximately 600 acres in the coveted Brookshire Salt Dome, west of Houston, Texas.

The Brookshire Salt Dome is among the most prolific salt domes in this region, which stretches along the Texas and Louisiana Gulf Coast.

Salt dome production historically comes in with high production numbers very quickly before leveling to a somewhat lower and steadier production rate for the remainder of the economic life of each well.

The discovery well in this region came into production in 1996 at 800 barrels of oil per day. This rate decreased to 250 bopd over three years, and now, ten years later, is producing 15 bopd.

"We have been fortunate to be able to obtain this prime acreage which will substantially increase our reserve base. We are setting up an initial 12 well drilling program which we expect to start in August 2006. We have the intention of maintaining a 1000 barrel per day operation in the Salt Dome area through a continuous drilling program. Development capital will be raised through our marketing program with our Asian financial partners taking approximately 25% of the project. This allows Powder River to capitalize on the current oil and gas prices, while carrying no additional debt financing," stated Powder River Basin Gas Corp. CEO, Brian Fox.

Mr. Fox continued, "I would also like to take this opportunity to express my deepest sympathies to the people of Indonesia following the tragic earthquake over the weekend. Having just returned from Indonesia the day prior, I was shocked and saddened by this disastrous turn of events. Our thoughts and prayers are with our many close friends and business associates and all the people of Indonesia through this difficult time."

Powder River Basin Gas Corp. is active in production, acquisition, and marketing of crude oil and natural gas properties.

Powder River Basin Gas Corp. trades on the OTCBB under the symbol PRVB.

This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes that the expectations in such statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Contact Information