SOURCE: Domestic Energy Corp.

May 14, 2008 08:30 ET

Domestic Energy Acquires 90 Wells With Shale Potential

HONEOYE FALLS, NY--(Marketwire - May 14, 2008) - Domestic Energy Corp. (PINKSHEETS: DMEC) announced here today it has acquired the working interest and operating rights to more than 90 wells in Tennessee with Chattanooga Shale potential.

"Initially, we plan to re-complete and stimulate several of these wells that are currently producing limited amounts of crude oil and natural gas," explained Larry Hillabrandt, Domestic CEO. "The long term potential is the development of the Chattanooga Shale in these wells. The Chattanooga Shale, like the Barnett Shale in Texas and the Marcellus shale in Pennsylvania and New York has been overlooked until just recently, when new stimulation techniques have opened the door to development of this source of natural gas," he added.

Domestic Energy Corp., an independent oil and gas exploration and development firm, acquired the wells from several Tennessee-based privately owned companies, in a cash and stock transaction. The firm plans to evaluate the wells in the coming months, rank the wells based on potential and begin stimulating the shale, while building a gas gathering system to transport the gas to an interstate market.

Hillabrandt noted that the newly acquired wells are within 17 miles of a Consol Energy Chattanooga Shale well that had an IP of 3.9 MMCF of gas per day. "For the time being we will focus on evaluating, prioritizing and stimulating our vertical wells, and we will evaluate the potential for drilling one or more horizontal wells in the future," he added.

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects," "projects," "plans," "feels," "anticipates" and certain of the other foregoing statements may be deemed "forward-looking statements." Although Domestic Energy Corp. believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors.

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