Palo Duro Energy Inc.

Palo Duro Energy Inc.

June 16, 2008 14:25 ET

Palo Duro Partners With Aspect/Abundant Energy in Barnett Shale Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2008) -


Mr. Mark Bush, President of Palo Duro Energy Inc. ("Palo Duro" or the "Company") (TSX VENTURE:PDE) is pleased to announce Palo Duro has entered into an agreement to participate with Aspect/Abundant Shale LP ("Aspect/Abundant") in the prolific Newark, East Barnett Shale field located in McLennan County, Texas. In the agreement, Palo Duro contributed current leasehold of 10,000 acres and has entered into an agreement with Aspect/Abundant to cross assign Palo Duro's 10,000 acres with Aspect/Abundant's approximate 45,000 acre position in exchange for Palo Duro receiving a proportionate 25% working interest in the 55,000 acre project.

Under the agreement Aspect/Abundant will be the operator of the project. Palo Duro has agreed to purchase its relative share of an existing 3-D seismic data set Aspect/Abundant has acquired in McLennan County within this acreage. The development plan currently calls for the acquiring a larger 3-D survey over the entirety of the acreage. A development drilling program is being scheduled at this time. Information concerning the drilling program and other activities in the area will be released as they become available.

Mark Bush, President of the Company stated: "We are extremely pleased to work with such a successful and aggressive company such as Aspect/Abundant that is recognized as having one of the industry leading teams in the US shale gas play. This will provide the Company with another means of increasing our shareholder value as we continue with our efforts in the Palo Duro Basin."

Aspect Abundant Shale LP is headquartered in Denver, Colorado with an office in Fort Worth, Texas and was formed in June of 2006 as a joint venture through affiliates of Aspect Energy, LLC and First Reserve, a private equity firm based in Houston, Texas. The new joint venture is focused on the evaluation and exploration of unconventional shale plays throughout North America with a current leasehold position of over one hundred eighty three thousand (183,000) acres primarily in the Barnett, Fayetteville and Woodford shale plays. Operations are handled by Aspect Energy, LLC. For further information please visit

Palo Duro Energy Inc. is an oil and gas exploration and development company with a fully equipped and staffed operations office in Houston, Texas and corporate offices in Vancouver, British Columbia. The Company holds a 27% interest in over 400,000 net acres of prospective oil and gas leases in the Palo Duro Basin in northwest Texas.

Palo Duro Energy Inc.

Mark A. Bush, President & CEO

Certain statements in this press release constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as "anticipate", "believe", "intend", "expect", "plan", "estimate", "budget", "outlook", "may", "will", "should", "could" or other similar wording. Forward-looking information includes, but is not limited to, reference to business strategy and goals, future capital and other expenditures, reserves and resources estimates, drilling plans, construction and repair activities, the submission of development plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, royalties payable, financing and capital activities, contingent liabilities, and environmental matters. By its very nature, such forward-looking information requires Palo Duro to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.

The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, Palo Duro does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and many not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable states securities laws.

Shares Outstanding: 161,091,844

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

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