SOURCE: Petro Resources Corporation

April 30, 2008 09:49 ET

Petro Resources Provides Operations Update

HOUSTON, TX--(Marketwire - April 30, 2008) - Petro Resources Corporation (AMEX: PRC) ("the Company") provides an update on the results from operations for year-to-date 2008.

Cinco Terry Project

In the Cinco Terry Field, located in Crockett County Texas, the Company in association with the operator, Approach Resources Inc. (NASDAQ: AREX) ("Approach"), has been successful in efforts to acquire additional acreage adjacent to the existing acreage position. A total of 9,482 gross acres of leasehold interest was acquired in two transactions. Approach, as operator for the Company and the other working interest owners in the project, participated in The University of Texas System's 113th Lease Sale. In a sealed-bid auction, Approach purchased approximately 7,843 gross acres for a total cash consideration of $1,900,000. Approach also acquired another 1,639 gross acres from third party operator for cash consideration of $216,000. The Company believes the acreage is prospective for Ellenberger and Canyon Sands production. The additional acreage expands the Cinco Terry Field acreage to a total of approximately 31,382 gross acres. The Company has approximately a 10% working interest in the Cinco Terry Field.

Year-to-date, 21 wells have been drilled and completed in Cinco Terry Field, 13 Ellenberger wells and 8 Canyon wells. As of December 31, 2007, the Company reported estimated proved reserves of approximately 600 Mboe (thousand barrels of oil equivalent) from the Cinco Terry Field. The field is currently being developed on 80 acre spacing with two rigs currently running on a full time basis. The operator has identified 119 additional drilling locations on currently held joint venture acreage.

Williston Basin

Subject to rig availability, the Company expects to spud its first deep test of the Newporte exploration prospect in early May. The Company conducted a 3-D seismic survey of the entire 4,400 acre prospect in the fourth quarter of 2007 and spent the first quarter of 2008 analyzing the data and selecting well locations.

The primary target for this well is the Deadwood Sandstone formation at approximately 9,500 feet. The well will penetrate several formations that are productive in other parts of North Dakota including the Bakken and Red River. The Company plans to take core samples from these formations for analysis. The Company expects that drilling and testing operations will be completed within 60 days from spud date.

Also within the next 120 days the Company plans to drill one new developmental horizontal well in the East Flaxton Madison Unit to capture additional primary production. The Company will also drill two new developmental horizontal wells in the re-pressurized Mohall Madison Unit. The Mohall Madison Unit will be the second unit in the Company's water flood re-pressurization program to have new horizontal production wells drilled.

In the Kolbo prospect, the Company has successfully drilled and completed the Overton 10-20 well. This well was drilled up-dip from a well drilled last year that produced for a short period of time. The well is currently producing about 25 barrels of oil per day along with approximately 200 barrels of water. The Company is currently evaluating the optimization of production from this well.

As of December 31, 2007, the Company reported estimated proved reserves of 2,300,000 boe (barrels of oil equivalent) from the Williston Basin.

East Chalkley Project

The Company recently reached an agreement to acquire a 34.375% working interest in the East Chalkley Project located in Cameron Parish Louisiana. East Chalkley is an oil field appraisal and development project. The project operated by Centurion Exploration Company, a privately owned company, headquartered in Houston, Texas.

The oil accumulation on the east flank of the Chalkley Field is a previously unidentified down-dip oil leg associated with a gas field. The producing fault block has been mapped using 3-D seismic as a three-way closure and has been confirmed by an existing well which is currently producing.

The initial well is scheduled to commence drilling in May and will offset the existing producing well.

Management Comments

Mr. Donald Kirkendall, President of Petro Resources said: "This has already been a very busy year for Petro Resources and the next 90 days look even busier as we get into the meat of our 2008 drilling program. We are excited about operations in North Dakota with both the Newporte exploration project and the continued progress in our water flood re-pressurization program. We expect to realize increases in production from both East Flaxton and Mohall." Mr. Kirkendall went on to say: "The additional acreage in the Cinco Terry Field is very important as the field has become a significant contributor to our growth since development began in 2007."

About Petro Resources

Petro Resources Corporation is an independent exploration and production company engaged in the acquisition of properties and leases, exploration, development, exploitation, and production of oil and natural gas in the continental United States.

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 filed with the SEC on 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
    or
    Don Kirkendall
    President
    (832) 369-6986