Premium Petroleum Corp.
PINK SHEETS : PPTL

Premium Petroleum Corp.

October 22, 2007 09:45 ET

Premium Petroleum Corp.: Additional Drilling on Boyne Lake Discovery

CALGARY, ALBERTA--(Marketwire - Oct. 22, 2007) - Premium Petroleum Corp. (PINK SHEETS:PPTL) is pleased to announce that the Company has acquired an additional 3 lines of seismic data totaling 20.47kms (12.71 miles) in length, on lands on or adjacent to the discovery well on its Boyne Lake Flowing Oil Sands Discovery. The Company now has acquired 13 lines of seismic totaling approximately 51.47kms (32 miles) in length.

Seismic utilizes sonic imaging technology. The objective of the seismic acquisition program is to create a picture of the geologic structure which emerges from the processing and interpretation of the seismic data. It becomes particularly meaningful when the seismic picture collaborates with geologic mapping. This collaborating evidence provides a powerful tool in determining anomalies and optimum drill location(s) within those anomalies. Therefore, seismic becomes an important guide or tool in the acquisition of additional lands.

Land Position: The Company now owns 19 sections (12,160 acres) of Crown Oil Sand licences; with original terms of 15 years, contiguous to or in the vicinity of the Boyne Lake Flowing Oil Sands discovery.

The Discovery: Management was anticipating that the primary target "Upper Grand Rapids" zone would contain natural gas reserves, similar to nearby wells. This zone was perforated, and gas was absent so a temporary cap was placed on the well. After 5 or 6 days the well was checked again, only to discover approximately 250 meters (800 foot) head of oil was present in the well bore - evidence that Oil Sands had been encountered, and that it was Flowing Oil Sands. In accordance with Alberta Energy's designation, the project is categorized Oil Sands; located in the southern part of the Cold Lake Oil Sands district.

Flowing Oil Sands: The significance of Flowing Oil Sands is that expensive mining and recovery methods are unnecessary, as conventional pumping methods can be used for recovery of the oil.

New Pool Discovery Status: As no one else in the area is producing oil from this Upper Grand Rapids zone, we have made a New Pool Discovery.

Drilling Program: Management continues analysis for the optimal drilling program to exploit the pool. It is anticipated that horizontal drilling technology will be utilized, and according to our in-house engineering calculations, could result in production rates ranging from 100 to 120 bopd (barrels of oil per day per well).

Location: Boyne Lake Flowing Oil Sands Prospect is located approximately 100 km (62 miles) north east of Edmonton in the Province of Alberta, Canada. Northern Alberta has been the subject of significant interest over the past years where major tar sand oil and Bitumen have been discovered, and is currently being refined or in the process of development by oil companies such as Suncor, Syncrude and Synenco.

According to the Petroleum Economist: "Although tar sands occur in more than 70 countries, the bulk is found in Canada in four regions: Athabasca, Wabasca, Cold Lake, and Peace River; together covering an area of some 77,000 km2. In fact, the reserve considered to be technically recoverable is estimated at 280-300 Gb (billions of barrels), larger than the Saudi Arabia oil reserves (optimistically) estimated at 240 Gb. The total reserves for Alberta, including oil not recoverable using current technology, are estimated at 1,700-2,500 Gb."

Bruce A. Thomson, B.A.Sc.; President & CEO states: "In 25 plus years of being around the oil and gas business, I have never seen the combination of commodity prices, overall market momentum, and now more favorable land and drilling costs all coincide at one time to this extent. This bodes will for our company to build significant shareholder value over the coming months".

About Premium Petroleum Corp.

Premium is set to exploit petroleum and natural gas reserves in an environment of unprecedented commodity prices and under the guidance of a highly qualified management and technical team.

Premium is an emerging junior oil and gas company financially well connected, coupled with a strong management and technical team focused on exploiting oil and gas reserves in the Western Canadian Sedimentary basin to 6000 feet in depth. Management intends to pursue a growth strategy through Land Assembly, Joint Ventures (Farmin / Farmout), and Acquisitions. The Company has assembled a seasoned team of managers and technical professionals in the areas of geology, geophysics, engineering, and legal. With the depth of the management and technical team we have assembled, Premium is poised for aggressive asset growth and development".

This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended; such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operations to vary significantly from those in prior periods, and those projected in forward-looking statements. Information with respect to these factors, which could materially affect the Company and its operations, are included on certain forms the Company files with the Securities and Exchange Commission.

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