SOURCE: Georgia Exploration Inc.

January 18, 2007 21:00 ET

Georgia to Purchase Three Wells in Texas

HOUSTON, TX -- (MARKET WIRE) -- January 18, 2007 -- Georgia Exploration Inc. (OTCBB: GXPL) ("Georgia" or the "Company"), announces that it has entered into an agreement to purchase a 90% working interest in three (3) wells to be drilled in the Shamrock Project located in Dewitt County, Texas (the "Project"). The Project is a three (3) well Frio-age natural gas prospect identified from 3-D seismic. The Project target formation is the Jameson sand at 3200 ft.

Under the terms of the Agreement, Georgia will pay $40,000 per well to buy into the Project to cover lease acreage, legal, seismic, and prospect generation fees including geological and engineering incurred by the operator to date. The three (3) wells will be drilled on a turnkey basis with drilling and completion costs totaling $429,195.00 per well. Georgia will pay 100% of the drilling and completion costs to earn a 90% working interest. After an individual well reaches payout of 125%, the operator will back in for a 10% working interest on a well-by-well basis. The scheduled spud date for the initial well is February 2007, with the second and third wells to follow on a continuous drilling basis.

Sam Nastat, President of Georgia, stated, "These Frio-age wells have proven to be very prolific producers throughout the Texas Gulf Coast, and we are fortunate to have this opportunity at this time in the early development stage of Georgia. The revenue from these wells will go a long way toward building a solid productive reserve base for the Company."


Georgia Exploration, through its wholly owned subsidiary, Wharton Resources Corp., holds oil and gas lease acreage in Texas and Kentucky, an agreement to acquire oil and gas interests in properties in Louisiana, and an option to acquire lease acreage and behind the pipe shut in production that is currently undergoing flow tests in Kansas.

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 extraction and sale of natural gas from the wells involves a number of costs and risks, which may limit our ability to generate cash flow from the wells, or any significantly anticipated net cash flow. . In addition, the business of Wharton is subject to a number of risks typical of oil and gas exploration and development companies including, among other things, 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.

Contact Information

  • For more information, contact:
    Georgia Exploration Inc.
    C/o Mr. Sam Nastat, President
    Tel. (713) 355-7001