SOURCE: Petro Resources Corporation

June 18, 2008 09:30 ET

Petro Resources Provides Operational Update

HOUSTON, TX--(Marketwire - June 18, 2008) - Petro Resources Corporation (AMEX: PRC) ("the Company") provides an update on operations in North Dakota and Louisiana.

North Dakota

The Company has completed the drilling phase of its first horizontal well in the East Flaxton Madison Unit. The EFMU#23H well was drilled to a total vertical depth of 5,780' and a total measured depth of 10,310' including approximately 4,000' horizontal lateral drilled through the Nesson formation. The horizontal portion of the lateral had mud log shows through most of its length as was anticipated. A completion rig will be moved on location to commence swabbing and completion operations shortly. The Company anticipates that the well turned to sales by mid-July. This is the first enhanced recovery well drilled in the East Flaxton Madison Unit which is the second of the Company's oil fields in North Dakota to become substantially fully re-pressurized by water injection.

The Company anticipates drilling similar horizontal wells in the Mohall Madison Unit later this year. Mohall has also been successfully re-pressurized and will be the Company's third such field to reach this stage in secondary recovery operations.

The Company anticipates that drilling operations will commence within the next week on the Emmel 10-3 well which will be the first deep test drilled on the Newporte prospect. The well site location has been built and rig loads are now arriving. Drilling operations on the Newporte prospect have been delayed due to a rig move from Canada and extremely wet weather conditions. Once drilling operations have begun the Company expects it will take 30-40 days to reach total depth. The main object for the well is the Deadwood Sandstone at approximately 10,000' and the well will also test other multiple horizons including the Red River and Bakken formations.

Louisiana

The Pine Pasture #2 well in the East Chalkley field in Cameron Parish Louisiana was spudded on June 12, 2008 and drilling operations are ongoing. The well is operated by Centurion Exploration of Houston, Texas. The Company expects that the well will reach total depth of 9,600 feet by the end of June. If the well is commercially successful, production will commence through existing production facilities minimizing the time to turn the well to sales.

New Hedges

During the second quarter of 2008, the Company purchased crude oil put options for 100 barrels per day in 2009 at a strike price of $110 per barrel.

Management Comments

Mr. Don Kirkendall, President of Petro Resources, said: "We are very pleased with our current level of activity and results from the EFMU#23H well. We also remain very enthusiastic about the deep Newporte prospect even though we are experiencing weather related delays in getting the rig to location." Mr. Kirkendall went on to say: "The East Chalkley development prospect looks very good to us and may be the first of several wells in the field if the results of the first well are as we expect."

About Petro Resources

Petro Resources Corporation is an independent exploration and production company engaged in acquisitions of exploratory leases, acquisitions of producing properties, secondary enhanced oil recovery projects, exploratory drilling, and production of oil and natural gas in the United States. For more information, please view our website at www.petroresourcescorp.com.

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 its various properties, and (3) estimates regarding the reserve potential of its various properties. 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) positive confirmation of the reserves, production and operating expenses associated with its various properties; and (3) 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 Annual Report on Form 10-K for the year ended December 31, 2007 and Form 10-Q for the quarter ended March 31, 2008. 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:

    Brad Holmes
    Investor Relations
    (713) 654-4009

    Don Kirkendall
    President
    (832) 369-6986