Palisades Petroleum Corporation
PINK SHEETS : PAPT

Palisades Petroleum Corporation

September 07, 2005 10:06 ET

Palisades Petroleum Corporation: North Buffalo Prospect Preparing for Development

RENO, NEVADA--(CCNMatthews - Sept. 7, 2005) - Palisades Petroleum Corporation (PINK SHEETS:PAPT) www.palisadespetroleum.com is pleased to announce that the Company has finalized agreements to acquire substantial Oil and Gas interests, including a 100% working interest, 80% net revenue interest, in 2925 net/gross acres of oil and gas leases in Chouteau County, Montana (Sweetgrass Arch, North West Montana, USA)

The acquisitions include The North Buffalo Prospect, the Bow Island (1st, 2nd, 3rd) at 700' - 1000' formations of the Dakota, Swift, Morrison, Sawtooth and Devonian.

"The North Buffalo Prospect is a geologically defined shallow gas project and is an offset location to major gas well production" Shane Ivancoe, President of Palisades Petroleum Corporation said today, "We have assembled a technical team with a combined experience of over 50 years in development and exploration of oil and gas in the region, estimates indicate that the prospect will support 8 gas wells, each producing in excess of 300,000 cubic feet of Natural Gas per day".

The North Buffalo Prospect lies south of the giant Cut Bank Oil and Gas Field, which is the most well known field within a broad regional hydrocarbon province that has been richly productive since the 1920s.

"The initial wells in the North Buffalo prospect will be drilled within 1/2 mile of an existing gas gathering line, the close proximity of which will expedite gas sales. Other U.S. companies that are active within this regional shallow gas play are ExxonMobil www.exxonmobil.com, Shell www.shell.com, Encana www.encana.com, Quicksilver Resources www.qrinc.com, Robinson Oil Co. and Western Natural Gas.

Further information on the progress of the Companies 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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