Primary Petroleum Corporation

Primary Petroleum Corporation

December 19, 2007 10:00 ET

Primary Petroleum to Commence Drilling on Its Teton Prospect in Montana

CALGARY, ALBERTA--(Marketwire - Dec. 19, 2007) - Primary Petroleum Corporation (TSX VENTURE:PIE)(USA:PETEF) ("Primary" or the "Company") is pleased to announce that it has completed its review of the 3D Seismic data processing and interpretation on its Teton Prospect and has initially selected 12 drilling locations to commence its drilling program.

The Company has contracted FX Drilling Company, Inc. from Oilmont, Montana for an eight well drilling program which is scheduled to commence the week of January 7th, 2008.

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 key targets for these multi-zone wells are the Madison oil and Sunburst gas formations. The current royalty rate on Primary's land in Montana is 12.5%.

The Company would also like to announce that it has amended the exercise price and expiry date of 2,000,000 share purchase warrants which were issued pursuant to a pre-IPO private placement. The original private placement of 2,000,000 shares with 2,000,000 share purchase warrants attached was accepted for filing with the Company's listing application.

The expiry date of the warrants has been extended by one year from December 31, 2007 to December 31, 2008 and the exercise price has been amended from $1.10 to $1.35. These warrants also contain a forced exercise provision whereby if the closing price of the Company's shares is $2.00 or greater for a period of 20 consecutive trading days, then the Company may accelerate the expiry date by giving notice that the warrants will expire on the 30th day after such notice. The TSX Venture Exchange consented to the amendment on December 17, 2007.

Primary 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 the Sedimentary Basin of the Western United States and Western Canada with a focus on acquiring assets in Montana and the surrounding states whereby Primary Petroleum maintains control of its own land plays and drilling operations.

To find out more about Primary Petroleum Corporation (TSX VENTURE:PIE) please visit the Company's 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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