Primary Petroleum Corporation

Primary Petroleum Corporation

November 06, 2007 10:00 ET

Primary Petroleum Closes Woodrow Prospect in Teton County Montana

CALGARY, ALBERTA--(Marketwire - Nov. 6, 2007) - Primary Petroleum Corporation (TSX VENTURE:PIE) ("Primary" or the "Company") is pleased to announce that it has completed its agreement dated June 01, 2007 with Loma Energy Corp. ("Loma") of Billings, Montana. Under the terms of the agreement, Primary shall acquire 100% of the Lessee's rights, title and interest in approximately 21,000 net acres in Teton County. The leases must provide Primary with a minimum of 82.5% Net Revenue Interest.

The cost to Primary was US$15/acre for approximately 13,000 net acres, which were 5 year paid up leases, and $5.25/acre for approximately 8,000 net acres that are scheduled to expire by the end of 2008. All leases scheduled to expire in 2008 have an option to renew whereby Primary can elect to continue the paid up lease for a further 5 years at a cost of $6/acre.

Primary has recently acquired, reprocessed and interpreted approximately 69 miles of 2D seismic over the Woodrow Prospect. The target formation for this prospect is the Sun River Dolomite member of the Mississippian Madison Formation. Secondary targets include gas in the Cretaceous Bow Island and Dakota formations as well as gas and/or oil in the Jurassic Swift and Devonian Nisku formations.

A number of Mississippian structural highs have been identified from the 2D seismic acquired in the Woodrow area. These structures will be detailed with 3D seismic prior to selecting drilling locations.

Approximately 12 miles north of the Woodrow prospect, the Pondera Oil Field has produced over 30 million barrels of oil from the same Sun River Madison Formation. These wells vary from 1900 to 2200 feet in depth.

"We are very pleased with our land acquisition strategy which continues to generate excellent prospects for leasing. We have been able to remain on target whereby our land costs are averaging approximately $14/acre," states Mike Marrandino, President. "Our business model over the last three years has enabled Primary to secure over 300,000 net acres of prospective leases and put in place Areas of Mutual Interest that will enable the Company to lease over 1,000,000 acres in Montana on a go forward basis and under the same favourable terms."

About Primary Petroleum Corp (PIE): is a growing oil and gas company actively engaged in exploration and development activities in Montana and Alberta with its head office in Calgary and offices in Shelby, Montana. Primary's management and technical teams include accomplished oil and gas exploration and development personnel, with extensive experience. The Company's mandate is to continue to aggressively acquire oil & gas prospects of merit in Montana and surrounding states located in the Sedimentary Basin whereby it maintains control of its own land plays and drilling operations. For further information, please visit our website at


This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements. We seek safe harbour.

CUSIP # 74161X107

This news release has been prepared by management. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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