SOURCE: Pacific Energy and Mining Company

August 31, 2005 13:29 ET

Colorado Utah Natural Gas, Inc. Announces Oil and Gas Discovery

SALT LAKE CITY, UT -- (MARKET WIRE) -- August 31, 2005 -- Colorado Utah Natural Gas, Inc. (www.coloradoutahgas.com) announced today that it has completed the drilling of two wells on its Grand County, Utah prospect. The company is currently drilling its third well.

The initial two wells have confirmed the discovery of oil and natural gas. The company estimates that the wells will be on production by the 1st week of September 2005. Evaluation of the discovery is continuing and the company will determine the optimum development strategy within the next few months.

Colorado Utah plans to commence an IPO this year in order to fund its future development plans.

ABOUT COLORADO UTAH NATURAL GAS

Colorado Utah Natural Gas owns leases in Grand and Uintah Counties, Utah. Said leases contain an estimated 15 Bcf of natural gas equivalent reserves. Management of Colorado Utah has over 105 years of combined experience in oil and gas in the State of Utah.

Pacific Energy and Mining Company (OTC: PEMC) has an equity position in Colorado Utah Natural Gas.

Disclaimer

The foregoing contains forward-looking information within the meaning of The Private Securities Litigation Act of 1995. Such forward-looking statements involve certain risks and uncertainties. The actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or further changes make it clear that any projected results (expressed or implied) will not be realized.

Contact Information

  • Contact:
    www.coloradoutahgas.com
    Colorado Utah Natural Gas, Inc.
    Terry Spencer
    (801) 566-1884
    Tariq Ahmad
    (775) 324-2198