SOURCE: Parafin Corporation

May 01, 2007 09:00 ET

ParaFin Corporation Signs Farmout Agreement to Earn 50% Working Interest in Producing Oil Field. Up to 27 Wells Offsetting 4 Producing Wells to Be Drilled in the Republic of Colombia, South

America

PALM SPRINGS, CA -- (MARKET WIRE) -- May 1, 2007 -- The Board of Directors of ParaFin Corporation (ParaFin) (OTCBB: PFNC) announces that ParaFin has signed a Farmout Agreement with Meta Petroleum Ltd. (Meta) to acquire a 50% working interest in a Hydrocarbon Concession and operating oil field in the Republic of Colombia, South America.

The Concession consists of approximately 7,000 hectares. It currently has four (4) producing wells with the potential for up to an additional twenty-seven (27) offset locations.

The Agreement requires ParaFin to pay 100% of all costs associated with the drilling, completing, equiping or abandoning the next four (4) wells to be drilled on the Concession. In addition, 100% of the revenue from the current four (4) wells will continue to be paid to the trustee for Meta until the said additional four (4) wells have been drilled, thereafter revenues from all wells shall be divided equally.

After the said four (4) wells have been drilled and completed (or abandoned) ParaFin shall have earned a 50% working interest in the Concession and Meta shall immediately assign 50% of the Concession to ParaFin. The Parties have also agreed to execute a standard "Joint Operating Agreement" (JOA) to administer the development and drilling of the remaining offset locations.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward-looking statements are further qualified by other factors including, but not limited to those, set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission (available at www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

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