SOURCE: PrimeGen Energy Corp.

January 04, 2010 16:01 ET

PrimeGen Energy Closes 2009 on High Note by Setting Oil Production Record of 1,745 bpd

BRIDGEWATER, NJ--(Marketwire - January 4, 2010) - PrimeGen Energy Corp. (PINKSHEETS: PGNE) ("PrimeGen" or the "Company") released new production figures as of December 31, 2009 resulting from the recent completion production of ten wells in the Timan-Pechora field and one well in Rodnikovskogo project. The Company achieved total average daily production of 16,550 bpd during the month and reached a production high of 17,340 bpd on December 28, 2009.

On November 10, 2009, the Company commenced commercial oil production of Kochmesskoye #8 well with production results for the first 15 days at an average daily rate of 1,590 barrels per day. On November 26, 2009, Kochmesskoye #9 commenced production with results for the first 24 days at an average daily rate of 1,620 barrels per day. On December 17, 2009, Kochmesskoye #10, the tenth well of the project was drilled and completed and resulted in setting a new production record for the field of 1,745 barrels per day. PrimeGen currently has ten wells in Timan-Pechora field producing at full capacity for a total of 13,937 barrels per day and one well in its Rodnikovskogo project producing 2,620 barrels per day.

The Timan-Pechora project 2010 development program calls for the drilling of a minimum of 30 wells to develop the field. When fully developed, the 30 wells could yield a daily production rate at Timan-Pechora of 35,000 barrels per day. The Rodnikovskogo project 2010 development program calls for the drilling of a minimum of 42 wells to develop the field. When fully developed, the 42 wells could yield a daily production rate at Rodnikovskogo of 110,000 barrels per day. It is estimated that these two projects could yield the Company a daily production rate of over 150,000 barrels per day. Using current pricing for crude oil in the region, PrimeGen has confirmed that all producing wells have generated $97.1 million in revenue or a projected $420 million per year.

In Addition, PrimeGen's Board of Directors formed a Committee to implement its plan to list its stock on the Over the Counter Bulletin Board (OTCBB). Robert Charlton, PrimeGen's CEO, is leading the OTCBB listing effort. PrimeGen's OTCBB goals are to apply by March 31, 2010. PrimeGen's listing on the OTCBB is subject to its listing requirements and standards. These include, but aren't limited to, share price and shareholder equity. There is no guarantee PrimeGen will qualify for or be accepted by the OTCBB for listing on its exchange.

Robert Charlton, CEO of PrimeGen, said, "We are a fully reporting Pink Sheets public company and have made a major effort to ensure we file our financial reports on time. We have been planning to list our shares on the OTCBB and expect our OTCBB application will be filed within 90 days.

About PrimeGen Energy Corporation

PrimeGen Energy Corp. is an oil and gas exploration Company whose primary focus is exploring and developing high potential unconventional resource plays. The Company's strategy and development assets are focused on a prolific and historic oil and natural gas resource play in Krasnoarmeiskome District, Saratovskoi Oblast in Russia. The Company is headquartered in Bridgewater, NJ and has offices in Moscow, Russia. PrimeGen Energy plans to use its comparative advantages in certain geographic regions to expand rapidly through strategic acquisitions of small oil and gas producing entities and production assets including wells, properties, operating equipment, and pipelines.

Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the development of an early stage company in the alternative energy industry, its products, and the entry into new markets for such products. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's current and periodic reports filed from time to time with the Securities and Exchange Commission Corp. (PINKSHEETS: PGNE) ("PrimeGen" or the "Company")

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