Odyssey Petroleum Corp.
TSX VENTURE : ODE
FRANKFURT : YQN

Odyssey Petroleum Corp.

July 12, 2007 17:17 ET

Odyssey Announces Spud Date for Drilling Program and Negotiation of $15M Investment

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2007) - Odyssey Petroleum Corp. (TSX VENTURE:ODE)(FRANKFURT:YQN) (the "Company" or "ODE") is pleased to announce that it has been notified of drilling rig availability on or around July 28th 2007 by Energy Drilling Company of Natchez, Mississippi, which will allow the Company to commence its planned drilling program, as previously disclosed in the Company's News Release of June 12, 2007.

The Company also announces that it has signed a Term Sheet, subject to final due diligence and regulatory approval, for an amount equal to USD$15,000,000, to be borrowed on behalf of Odyssey Petroleum Corp. (U.S.), a 100% wholly owned subsidiary of the Company, which controls 100% of the ODE's Mississippi assets. These funds may be drawn for the proposed drilling and development of the Company's Puckett and Pelahatchie fields. The Term Sheet is subject to the following conditions:

- a commitment fee of 1.5% of the committed capital upon closing, plus a 12% annual interest rate, compounded monthly on said $15 million to the lender in the form of a secured note. This interest shall be paid monthly and includes principal payments to be made quarterly at a rate of 5% of the outstanding balance plus accrued interest, if any;

- an amount equal to a 3% over-riding royalty interest in the subject existing production from the subject properties (Puckett and Pelahatchie Fields), paid monthly; and an amount equal to a 5% over-riding royalty interest in any new production from the subject properties, paid monthly; and

- the issuance to the lender of warrants to purchase 1,400,000 post-consolidated common shares of the Company (see June 12 News Release for particulars regarding proposed consolidation), exercisable for a period of three years from issuance at an exercise price of Cdn$1.50 per post-consolidated share.

The Company and the lender have agreed to use their best efforts to negotiate and sign a Binding Agreement and close the transactions contemplated by August 15, 2007. The Company believes that this loan, together with the proposed debt settlement, private placement and consolidation of its share capital as disclosed in the June 12, 2007 News Release, will greatly assist in restructuring the Company so that it may achieve its objectives of realizing the inherent value of ODE's oil and gas assets.

About Odyssey Petroleum Corp.

Odyssey Petroleum Corp. is a Canadian based junior oil and gas company traded publicly under the symbol ODE on the TSX-V Exchange. The Company holds assets of approximately $37,000,000 in five majority controlled oil and gas fields located in the States of Louisiana and Mississippi, U.S.A. As disclosed in the NI 51-101F2 Report filed December 14, 2006 for the fiscal year ended December 31, 2005, Fletcher Lewis, P.Eng. estimated the net present value of future net revenue (before income taxes, 10% discount rate) of the Company's reserves located in the Smith, Rankin, Jasper and Scott Counties, Mississippi, and Jefferson Davis Parish, Louisiana, to be $978,976,044. The Company's mission is the discovery and development of economic oil and gas through the exploration of high quality projects located primarily in the Southeastern United States. Odyssey Petroleum Corp.'s website is www.odysseypetroleum.com.

ON BEHALF OF THE BOARD

Joe DeVries, Chief Executive Officer

Forward-Looking Statements:

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in ODE's periodic filings with Canadian and European Securities Regulators. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. ODE does not assume the obligation to update any forward-looking statement.

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

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