Odyssey Petroleum Corp.
TSX VENTURE : ODE
FRANKFURT : YQN

Odyssey Petroleum Corp.

June 12, 2007 17:41 ET

Odyssey Announces Summer Drilling Work Program; Proposed Debt Settlement, Private Placement, Filing of Registration Statement in United States, and Consolidation of Share Capital

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

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 which will allow the Company to commence its planned drilling program. Surveying engineers staked the first two locations in Pelahatchie Field on Wednesday, June 6th. The Company is now applying for drilling permits and beginning to prepare the locations with drilling operations expected to commence in July.

Moving just 100 feet south of the 17,000 ft Harold Karges well in Section 18, Pelahatchie Field, the Company plans to drill an 11,500 ft well which will allow it to produce approximately 200 feet of known cumulative oil and gas bearing formations discovered and behind pipe in the Karges well. These shallow formations are not currently being accessed or produced in the Karges well, because the deeper horizons are expected to yield production for years starting with the Norphlet formation at 17,100 feet. A reserve and economical evaluation report was prepared by Gus Sanders, Petroleum Engineer, a qualified reserves evaluator in accordance with National Instrument 51-101 (NI 51-101) and the standards set out in the Canadian Oil and Gas Evaluation Handbook (the "Report"). The reserves estimates were functions of engineering judgment and interpretation, based on data available as of the effective date of the report, being June 4, 2007. The reserves calculated by Mr. Sanders for this well based on a 40-acre drainage area and further reduced by 25% to account for wedging of the drainage volume is 1,122,000 barrels of oil, which is classified as proved undeveloped. Drilling and completion costs are estimated at US$1,800,000.

Also to be drilled in Pelahatchie Field, will be an in-field developmental well in Section 7, situated where geological and engineering studies indicate that over 100 feet of cumulative oil and gas bearing formations will be encountered. This well will also be drilled to 11,500 feet so as to encounter the prolific 11,300 ft Hosston formation (also in the Karges well), a formation that has yielded initial production rates from 250 to over 1,000 barrels of oil per day in nearby wells. The reserve estimates calculated by Mr. Sanders in his Report for this well based on a 40-acre drainage area and further reduced by 25% to account for wedging of the drainage volume is 1,000,200 barrels of oil, which is classified as proved undeveloped. Drilling and completion costs are estimated at US$1,800,000.

Two Mississippi drilling companies capable of drilling wells to this depth are presently bidding for Odyssey's work. Performance Drilling Company of Jackson, Mississippi, a new drilling company which now has three rigs working in Mississippi and adjoining states; and Energy Drilling Company of Natchez, Mississippi, a twenty-five year old experienced company with ten drilling rigs, two of which are currently working in Mississippi and one which will be available in approximately five weeks.

Proposed Debt Settlement

The Company also announces that it has negotiated with certain creditors the settlement of outstanding debts in the aggregate amount of Cdn$2,587,500 (the "Debt") by the issuance of up to 34,500,000 common shares at a deemed price of Cdn$0.075 per share, subject to acceptance by the TSX Venture Exchange (the "Exchange").

Included in this debt settlement is US$1,800,000 which relates to 10% Secured Debentures that were issued January 1, 2007. The Company's savings in settling these Debentures by the issuance of shares for debt includes: (i) retention by the Company of 40% of net revenues (after royalties and operating expenses) payable to the debenture holders until 100% payment has been received by the debenture holders; (ii) retention by the Company of 20% of net revenues (after royalties and operating expenses) payable to the debenture holders for the life of the four wells after 100% payout. By the issuance of the shares to settle the Debenture portion of the Debt, the Company retains this revenue and saves approximately US$800,000 in interest expense over the life of the Debentures.

Private Placement Negotiated

The Company further announces that it has negotiated, subject to acceptance by the Exchange, a private placement for gross proceeds of up to $7,500,000. These funds will be raised by the Company issuing a total of up to 100,000,000 Units (the "Units") at a price of $0.075 per Unit, each Unit consisting of one common share and one-half share purchase warrant, each whole warrant entitling the holder thereof to purchase one additional common share, exercisable for a period of one year from the date of issuance at a price of $0.15 per share.

Proceeds raised from the private placement will be used for the upcoming summer drilling program as mentioned above, and for general working capital purposes.

The Company may pay finders' fees in connection with the private placement in accordance with the rules and policies of the Exchange.

Three of the directors and officers of the Company, together with an associate of an officer or director of the Company that is a related party, have together directly and indirectly subscribed for a total of up to 7,300,000 Units, and upon closing of this private placement, those related parties will therefore acquire up to an additional 7,300,000 shares in the capital stock of the Company which will increase their pro rata shareholdings in the Company (the "Related Party Transaction"). All of the independent directors of the Company, acting in good faith, have determined that the fair market value of the securities being issued and the consideration paid is reasonable and, with the value of the Related Party Transaction being less than 25% of the Company's market capitalization, is exempt from the formal valuation and minority shareholder approval requirements of the Ontario Securities Commission's Rule 61-501.

Proposed Name Change and Consolidation

The Company intends to seek shareholder approval at its Annual and Special General Meeting scheduled to be held August 20, 2007 to a consolidation of its share capital on a one new share for 20 old shares basis, as well as a name change. In addition to approval of shareholders, the proposed name change and consolidation are also subject to acceptance by the Exchange.

Proposed Filing of Registration Statement in the United States

As the Company's properties are located within the United States and as many shareholders reside in the United States, the Company is of the opinion that the filing of a Registration Statement with the Securities and Exchange Commission may be of merit. The Company is reviewing the requirements, and, if warranted, will commence preparation of a 20F Registration Statement.

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.

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 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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