SOURCE: Petro Resources Corporation

December 28, 2006 09:30 ET

Petro Resources Announces Successful Wells and Operational Update

HOUSTON, TX -- (MARKET WIRE) -- December 28, 2006 -- Petro Resources Corporation (AMEX: PRC) ("the Company") announced today recent results of its several exploration and drilling programs. The following discoveries and results post-date the disclosures contained in the Company's third quarter report on Form 10-QSB filed with the SEC on November 14, 2006.

Petro Resources announced that the Silver Oak Operating, Inc. Hill #1 Well, in DeSoto Parish, LA was successfully drilled and completed with 3 horizontal laterals in the James Lime formation. The well is expected to be turned to sales January 2, 2007 at an anticipated rate of approximately 4,000 mcf per day with possible increased production rates later in the month. Petro Resources has a 10% working interest in the prospect.

The Company also announced a discovery offshore with a successful well at Galveston 310L through its partnership with Hall-Houston Exploration. Well logs indicate that at least four Miocene sands should be productive. The well is currently undergoing completion operations. This latest offshore discovery is the fourth successful discovery of the six prospects drilled to date by the Hall-Houston Exploration partnership, in which Petro Resources has a 5.3% interest. The Company is currently participating in the first of several additional wells in East Cameron 359.

Petro Resources has participated in two recently drilled Canyon sand wells in Crockett County, Texas bringing the total to four successful wells in that development program near Ozona, Texas. The Terry Cinco 801 and 903 wells operated by Approach Resources Inc. headquartered in Fort Worth, Texas are currently undergoing completion operations. The Company has a 9.41% working interest in these wells and expects to have both of these wells completed and producing soon.

The Company has also recently begun drilling operations in the initial New Albany Shale wells in Kentucky. The Approach Resources Kyle Dunn #10-1 was spudded on December 15th and anticipates the well to reach total depth shortly to be followed by two additional wells in the pilot drilling program. The entire New Albany Shale prospect covers approximately 72,000 acres in which Petro Resources has a 10% working interest.

The Company has participated with Bayou City Exploration (OTCBB: BYCX) in the drilling of the Walker Louisiana Properties 18-1 well, Calcasieu Parish, Louisiana for an 8.33% working interest. The well encountered several prospectively productive zones of limited thickness and it was consequently determined best to plug and abandon the well and not to pursue completion operations of those zones.

The Company also announced it continued pursuit of an interest in 15 fields located in the Williston Basin in North Dakota. The properties consist of approximately 15,000 acres and 150 wells which are currently producing approximately 520 barrels of oil per day net to the seller's interest. The Company is pursuing the acquisition of fifty percent (50%) of the interest currently owned by the seller in the wells and acreage. The Company had previously announced its expectation for the transaction to close, assuming satisfaction of certain conditions, on or before December 31, 2006. The parties have agreed to extend the closing date to January 31, 2007.

For additional information, please view our website at www.petroresourcescorp.com

About Petro Resources Corporation:

Petro Resources Corporation is an independent exploration and production company focused on domestic lease acquisitions, exploration, and oil and gas production.

Forward-Looking Statements

The statements contained in this press release that are not historical are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements, without limitation, regarding the Company's expectations, beliefs, intentions or strategies regarding the future. Such forward-looking statements relate to, among other things: (1) the Company's proposed exploration and drilling operations on its various properties; (2) the expected production and revenue from those properties; and (3) estimates regarding the increase in reserve potential of those properties; (4) the Company's acquisition of the 50% interest in the 15 fields located in the Williston Basin in North Dakota; (5) the expected production and revenue from the Williston properties; and (6) estimates regarding the increase in reserve potential of the Williston property; and (7) regulation of the Company's industries and markets. These statements are qualified by important factors that could cause the Company's actual results to differ materially from those reflected by the forward-looking statements. Such factors include but are not limited to: (1) the Company's ability to finance the continued exploration and drilling operations on its various properties; (2) the Company's ability to acquire the $60 million of financing required to acquire the Williston Basin properties; (3) the Company's ability to negotiate and execute mutually agreeable definitive agreements for its acquisition of the Williston Basin properties; (4) positive confirmation of the reserves, production and operating expenses associated with its various properties, including the Williston Basin properties; and (5) the general risks associated with oil and gas exploration and development, including those risks and factors described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission, including, but not limited to the Company's Pre-Effective Amendment No. 2 to its Registration Statement on Form SB-2 Form filed with the SEC on July 14, 2006. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Contact Information

  • Contact:
    Don Kirkendall
    President
    713-968-9290