Grey Wolf Exploration Inc.

Grey Wolf Exploration Inc.

September 10, 2008 10:29 ET

Grey Wolf Provides Pouce Coupe Horizontal Well Update

CALGARY, ALBERTA--(Marketwire - Sept. 10, 2008) -


Grey Wolf Exploration Inc. ("Grey Wolf") (TSX:GWE) is pleased to announce that its first 100 percent working interest ("W.I.") horizontal well in the Pouce Coupe area of Alberta at 1-27-77-11 W6M was tied-in and placed on production on August 15, 2008. Production has been intermittent while the well has been cleaning up after a five-stage frac, but has averaged 4.0 million cubic feet per day ("MMcf/d") (667 barrels of oil equivalent per day "boe/d") over a 22 day period and the well is currently producing at a controlled rate of 4.6 MMcf/d (767 boe/d).

Mr. Bob Watson, Chief Executive Officer stated "We expect this well to exhibit the normal hyperbolic decline rate experienced in the area, however, we have every reason to believe that this is one of the better wells completed in the play to-date."

In addition, a partner-operated horizontal well (Grey Wolf 50 percent W.I.) in the Pouce Coupe area has now reached total depth. The well was drilled to a total measured depth of 3,125 metres, including a 1,000 metre horizontal lateral in the Doig formation. Grey Wolf expects further information on this well will be available during the fourth quarter.

The Company also reports that it is making steady progress towards extending infrastructure in its Petitot area located in northwestern Alberta.

Grey Wolf is an Alberta-based oil and natural gas company involved in the exploration, development and production of natural gas and crude oil in the Western Canadian Sedimentary Basin. Grey Wolf operates horizontal resource plays in the Doig and Montney of the Peace River Arch and the Horn River Shale at Petitot. Conventional operations include the gas reservoirs of the Slave Point at Petitot and the gas reservoirs in the Cardium, Viking and Mannville of Caroline. The Company's common shares trade on the Toronto Stock Exchange under the symbol "GWE".

Forward-Looking Statements - Certain statements contained in this Media Release constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this Media Release should not be unduly relied upon. These statements speak only as of the date of this Media Release. We assume no obligation to revise or update these statements except as required pursuant to applicable securities laws.

The calculation of barrels of oil equivalent ("boe") is based on a conversion ratio of six thousand cubic feet of natural gas to one barrel of oil to estimate relative energy content and does not represent a value equivalency - boes may be misleading, particularly if used in isolation.

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