Primary Petroleum Corporation

Primary Petroleum Corporation

October 30, 2007 10:00 ET

Primary Petroleum Completes 3D Seismic Program on its Teton Prospect in Montana

CALGARY, ALBERTA--(Marketwire - Oct. 30, 2007) - Primary Petroleum Corporation ("Primary" or the "Company") (TSX VENTURE:PIE) is pleased to announce that its 19.11 sq. mi. 3D seismic program has been completed on the Teton oil prospect in Western Montana. The program has been completed on time and on budget.

Data processing has commenced with interpretation to follow. It is anticipated that it should take up to 3 to 4 weeks to complete the selection of the initial 8 drill locations. Primary expects that based on early rig availability and minimal delays with title confirmation and permitting, drilling could commence in early December.

The Teton prospect covers some 97,400 net acres (152 sections) and is offsetting to the Gypsy Basin which has produced over 510,000 barrels of oil from two sections (1280 net acres), to date. The Company has currently identified 36 potential drill locations to date. The key targets for these multi-zone wells are the Madison oil and Sunburst gas formations.

The second 3D seismic program on the Saturn oil prospect in eastern Montana is in its final stages of the leasing and permitting program. The 3D seismic crew is scheduled to be on location in early November.

The Saturn oil prospect covers 20,100 net acres (31 sections) and is offsetting the Cabaret Coulee field (less than one mile from the 1st drill location) which produced in excess of 450,000 barrels of oil from one section (640 net acres). The Company has currently identified 8 potential drill locations to date. The key targets are the multiple horizon Mississippian oil play consisting of both the Mission Canyon and McGowan dolomitic limestones.

The current value of the Canadian dollar and the upcoming changes to the Alberta royalty regime for oil and gas production makes this an opportune time to be focused on oil and gas exploration and development in Montana, USA.

At current oil and gas prices, a well producing 100 barrels of oil/day in Alberta, would be subject to a royalty rate of 47.7% and a gas well producing 500,000 cubic feet of gas/day (approx. 83 barrels of oil equivalent/day) would be subject to a royalty rate of 37.2% under the new royalty regime proposed by the Alberta government on October 25, 2007.

The current royalty rate on Primary's lands in Montana is 12.5%. The state of Montana also assesses a production tax of 9%.

About Primary Petroleum Corp. (PIE): Primary is an oil and gas company actively engaged in acquisitions, exploration and development activities in Montana and Alberta with its head office in Calgary and offices in Shelby, MT. 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. To date the company has acquired 292,564 net acres at an average cost of $14/acre which covers six oil and gas prospects. For further information, please visit our website at


This news release has been prepared by management. 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.

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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