Palisades Petroleum Corporation
PINK SHEETS : PAPT

Palisades Petroleum Corporation

July 16, 2007 11:01 ET

Palisades Petroleum Corporation: Montana Gas Well Update Report

RENO, NEVADA--(Marketwire - July 16, 2007) - Palisades Petroleum Corporation's (PINK SHEETS:PAPT) North Buffalo project discovery well the Seidler 173-10 well, located in Chouteau County, Montana, USA, has had a workover. The discovery well, which showed an initial production rate of 283,000 cubic feet of natural gas, was completed in the First Bow Island sand formation at a depth of 762 feet.

Pruitt Construction attached a workover rig on the well and pulled the old tubing and replaced it with smaller diameter tubing. They blew gas from the well to clear the accumulated water, and unloaded 2 barrels of water, much less than expected. This should increase production from the well as soon as maintenance at the Hardpan Gathering's compressor station is completed this month.

Additional permitted well locations are currently being studied by the project partners to begin drilling as soon as possible.

Further information on the progress of the Company's activities will be presented on a timely basis.

Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and seismic reports; the ability to close the acquisition of Oil and Gas exploration properties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in Palisades Petroleum Corporation filings with the Pink Sheets LLC and may be accessed at http://www.pinksheets.com.

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