SOURCE: Georgia Exploration Inc.

January 22, 2007 20:35 ET

Georgia Increase Frio Prospects to Five Wells

HOUSTON, TX -- (MARKET WIRE) -- January 22, 2007 -- Georgia Exploration Inc. (OTCBB: GXPL) ("Georgia" or the "Company"), wishes to announce that it has entered into an agreement to participate in the Brushy Creek Frio Aged natural gas project located in Lavaca County Texas. Georgia's entry into the project will be the Brushy Creek IV Prospect. Brushy Creek IV is a two well 3D seismic controlled project situated in the prolific Oligocene Frio oil and gas trend located in the Texas lower gulf coast. The two prospects lie within the general area of the recently successful 8 well Brushy Creek and 2 well Bennett projects which have resulted in 6 Frio discoveries, 3 Miocene discoveries, and 1 Yegua completion. Brushy Creek IV will target numerous high quality amplitude anomalies very similar to those that have proven productive by previous drilling. Under the terms of the agreement, Georgia will pay 35.4643% of the total development cost to earn a 31.0313% working interest in the project. The total projected cost of the 2 well project is $1,100,000. Drilling is scheduled to commence February 15th, 2007.

Sam Nastat, Georgia's President stated, "This is a great addition to our current inventory of high quality Frio prospects. The revenues and reserve base generated from these prospects will go a long way in securing Georgia's path to becoming a substantial junior oil and gas company."


The Company is a junior resource exploration company that holds an interest in 14 mineral claims in British Columbia, known as the Chub Claims. Georgia has completed an initial exploration program on its claims and is evaluating a further work program. The Company is seeking to complete the acquisition of oil & gas interests, and may also look for additional resource opportunities.

This press release may include forward-looking statements. These statements are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. For example, the completion of the proposed transaction between Georgia and Wharton is subject to a number of conditions that must be met or waived, and accordingly there can be no guarantee that the transaction will successfully complete. In addition, the business of Wharton is subject to a number of risks typical of oil and gas exploration and development companies. In addition, estimating reserves involves inherent engineering uncertainties as well as inherent uncertainties about the future fluctuations in the price of oil and gas, which can cause estimates of reserves to be revised upwards or downwards. Other factors affecting forward looking statements include, among others, the inherent uncertainties associated with oil and gas exploration; laws, environmental, judicial, regulatory, political and competitive developments in areas in which Georgia Exploration operates; and technological, mechanical and operational difficulties encountered in connection with Georgia Exploration's activities.

The securities referred to in this press release have not been registered under the United Sates Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Securities Act or unless an exemption from registration is available.

Certain statements including proposed drilling programs, future reserves and other information included or referenced herein constitute forward looking statements. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements described herein to be materially different from any future results or achievements expressed or implied by such forward looking statements.

Contact Information

  • For more information, contact:

    Georgia Exploration Inc.
    C/o Mr. Sam Nastat, President
    Tel. (713) 355-7001