SOURCE: Pilgrim Petroleum Corporation

June 25, 2008 12:32 ET

Pilgrim Petroleum Cancels LOI With Frontier Energy Corporation

DALLAS, TX--(Marketwire - June 25, 2008) - Pilgrim Petroleum Corporation (PINKSHEETS: PGPM) (FRANKFURT: PHV) announced today that it has canceled its Letter of Intent (LOI) with Frontier Energy to purchase interests in Cowan Project located in Archer County, Texas effective today.

Pilgrim Petroleum President Rafael Pinedo said, "The termination of the LOI was due to, among other things, the inability to either complete a definitive agreement or arrive at mutually acceptable terms for the transaction and the low price of Frontier shares, and it would not be in the best interest of its shareholders at this time. Therefore, with the mutual consent the contemplated acquisition was canceled effective today."

About Pilgrim Petroleum Corporation.

Pilgrim Petroleum Corporation (PINKSHEETS: PGPM) (FRANKFURT: PHV) is an independent oil and gas company based in Irving, Texas. The company is acquiring oil and gas leases, producing properties, mineral rights, and surface interests primarily on marginal fields. Once acquired, the company intends to redevelop each property to maximize the income from each property by refurbishing and improving the existing production.

Forward-Looking Statements: The statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," and "seeking" and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements.

2008 Pilgrim Petroleum Corporation. The information herein is subject to change without notice. Pilgrim Petroleum Corporation shall not be liable for technical or editorial errors or omissions contained herein.

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