Nitro Petroleum Incorporated
OTC Bulletin Board : NTRO

Nitro Petroleum Incorporated

June 23, 2011 09:30 ET

Nitro Petroleum Incorporated Announces New Acquisitions and Well Reports

SHAWNEE, OKLAHOMA--(Marketwire - June 23, 2011) - Nitro Petroleum Incorporated (OTCBB:NTRO)

The company is excited to announce that it has closed on a transaction that will advance Nitro's Business plan two to three years. Nitro has been negotiating this transaction for approximately four months. The company recently completed an acquisition of additional interest in some of the company's operated wells. Nitro also agreed to a debt settlement agreement with debt holders. The company is utilizing restricted Nitro treasury stock to complete these transactions. The company canceled 100,000,000 of its outstanding shares in 2009. The company is utilizing 63,627,090 of these shares to complete the purchase of the oil and gas properties and to retire the company debt. Part of the asset acquisition is additional interest in the Quinlan project. The effective date of this transaction is January 1, 2011.

The company has commenced restoring production on the Quinlan properties, which is part of the oil and gas acquisition. Nitro Petroleum Inc. has successfully completed phase one of the Quinlan project, by replacing the down hole equipment in the Quinlan #2 well from conventional pump to submersible lift. The well is now producing approximately 24 BOPD. The company will now commence phase two and three. Phase two is to enhance the saltwater system to dispose 5000 to 6000 BOWP/D. This will require a larger saltwater pump and tubing. We will start phase three as soon as the saltwater disposal system is completed. Phase three is to convert the Quinlan #3 well form conventional pumping to submersible lift. The company is estimating this well to produce 20 to 30 BOP/D.

The company is currently discussing with our industry partners to participate in this project, this will provide for the additional working capital needed to complete this project. We believe that this project will be completed within the next 30-45 days. The company is estimating the project will produce 50 BOPD with a gross revenue stream in excess of $125,000 per month at $90.00 per BBL. Summarized below is the evaluation of the transaction.

Settlement Value

Quinlan and Crown Property Value = $1,517,459

Debt Valued at $416,563.55

Total Valued $1,934,022.55

Restricted Treasury Stock = 63,627,090

Shares Valued at @ 3.04 cents per share

About Nitro Petroleum: Nitro Petroleum Incorporated is an independent, energy company engaged in the acquisition, exploitation and development of oil and natural gas properties in the United States and Canada. Nitro's objective is to seek out and develop opportunities in the oil and natural gas sectors that represent a low risk opportunity. As well, Nitro aims to define larger projects that can be developed with Joint Venture partners. More information about the company is available at

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. We do not intend to, and undertake no duty to, update any such forward looking statements to reflect the impact of circumstances or events that arise after the date such forward looking statements were made.

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