Nitro Petroleum Incorporated
OTC Bulletin Board : NPTR

Nitro Petroleum Incorporated

March 22, 2006 12:25 ET

Nitro Petroleum Announces Agreement to Acquire Partnership Interests

LAS VEGAS, NEVADA--(CCNMatthews - March 22, 2006) - Nitro Petroleum, Inc. (OTCBB:NPTR) announced today that it has executed an agreement to acquire an interest in its JV partners who operate in the Barnett Shale and the Corsicana Project. The Company has previously purchased mineral acreage and working interests in the Barnett Shale and is a joint venture partner in a pilot project in the Corsicana Field.

Nitro Petroleum has executed an exclusive letter of agreement to acquire an interest in the partnerships of REO Energy, Ltd. and JMT Resources, Ltd., who operate the Barnett Shale and Corsicana Projects, respectively. Nitro has advanced $500,000 towards the initial acquisition, which is structured to acquire one-third of all of REO's holdings for $6.2 million. The Company has currently invested $400,000 in Barnett Shale acreage and working interests in wells drilled therein.

The Company has also committed to invest an additional $3 million in JMT Resource's Corsicana Project in exchange for a one-half of their respective interests. To date, Nitro has invested $400,000 in the Corsicana Redevelopment Project.

"The Company has an opportunity to participate in a fully developed, vertically integrated oil and gas operation. The ability of the Company to purchase an interest in its current partners will result in a significant increase in shareholder value. Not only do our partners have extensive acreage in some of the most prolific oil and gas plays in the continental US, they also have an existing infrastructure of drilling rigs and pipelines that will allow for unimpeded growth," says Mr. Ted Kozub, President of Nitro Petroleum, Inc.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications which may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above.

Contact Information