International PetroReal Oil Corporation
TSX VENTURE : IPO

International PetroReal Oil Corporation

December 07, 2007 13:54 ET

International PetroReal Oil Corporation Augments Income, Value With Management Agreement & Offer to Purchase Water Disposal Operation

CALGARY, ALBERTA--(Marketwire - Dec. 7, 2007) - International PetroReal Oil Corporation, Calgary, ("PetroReal" or "the Company") (TSX VENTURE:IPO) announces that it has entered into an agreement with a private Calgary-based company ("Privco") to manage Privco's water disposal operation ("the Operation") located in southeastern Alberta until July 1, 2008. Under the agreement, PetroReal will also have the option to purchase Privco's one hundred percent ownership in the Operation at any time up to the same date.

As a result of the transaction, PetroReal will immediately realize a gain in operating income of approximately $50,000.00 per month, increasing total operating income for the Company to approximately $200,000.00 per month. As well, PetroReal will be entitled to all outstanding accounts receivable, estimated to be approximately $400,000.00. PetroReal believes that net operating income derived from the Operation can be doubled at minimal cost through optimization, efficiency improvements and marketing.

In consideration, PetroReal will pay off all outstanding indebtedness against the Operation, estimated to be approximately $350,000.00. If PetroReal exercises its option to purchase, it will issue to Privco 2,500,000 million PetroReal common shares at a deemed value of $1.00 per share.

The transaction is subject to regulatory approvals.

Overview of the Operation

The Operation is a single well water processing and disposal facility centralized in a high concentration of shallow gas wells in southeast Alberta. The Operation injects an average of two thousand cubic meters of water per day while having the capability to nearly double that capacity. As most wells in the region experience increased water volumes as gas production matures, PetroReal recognizes that the Operation will become more integral to producers. The Company recognizes that numerous wells in close proximity to the Operation remain shut in due to excessive water volumes and believes that new business can be attracted from producers that are not yet customers. Additionally, PetroReal has identified the potential opportunity to acquire and reactivate other shut in gas reserves and productive capability currently deemed uneconomic due to excessive water volumes.

Mark Hlady, President and C.E.O. of PetroReal, comments, "This transaction allows us to assess an opportunity that has the short term ability to positively impact Company income with minimal exposure, while having the long term potential to diversify income streams and create a new area of activity, on attractive terms. We firmly believe that this business can be the cornerstone for PetroReal's evolving expansion into southern Alberta exploration, production and operations."

About International PetroReal Oil Corporation

International PetroReal Oil Corporation is a Calgary-based, emerging, TSX Venture-listed company focused on exploration, exploitation, development and production of oil and gas primarily in North America. Recently restructured, the Company's invigorated business plan is to enhance shareholder value through a pragmatic strategy of exploration, acquisition and timeliness.

Reader Advisory

Certain information regarding International PetroReal Oil Corporation in this disclosure including management's future plans and operations, drilling inventory and wells to be drilled, timing of drilling and tie in of wells, productive capacity of new wells, capital expenditures and timing thereof, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, but not limited to, risks associated with oi and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers, inability to retain equipment, manpower and services, incorrect assessment of the value of acquisitions, failure to realize on the anticipated benefits of acquisitions, delays resulting from or inability to obtain regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual risks may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect International PetroReal's operations and financial results are included in reports on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website at www.sedar.com or International PetroReal's website at www.petroreal.com. Furthermore, the forward-looking statements contained in this news release are made as at the date of this disclosure and International PetroReal does not undertake any obligation to update publicly or to revise any of the represented forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this disclosure.

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