SOURCE: Pilgrim Petroleum Corporation

May 20, 2008 12:58 ET

Pilgrim Petroleum Report on Economic and Potential Recoverable Assessment in Archer and Wichita County Interests

DALLAS, TX--(Marketwire - May 20, 2008) - Pilgrim Petroleum Corporation (PINKSHEETS: PGPM) (FRANKFURT: PHV) is pleased to announce that the company's Assessment on its interests in Archer and Wichita Counties Texas, prepared by Gustavson Associates, can be found at http://www.bpetroleum.com. The report has an effective date of September 15, 2006, and evaluates Pilgrim Petroleum acreage located on the Bend Arch-Fort Worth Basin Province, Texas.

The report was prepared using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 ("NI 51-101"). Additionally, Gustavson Associates conducted a scoping economic analysis of the Prospect using the "Best Estimate" for both an oil and gas future net revenues (before deductions of income taxes).

Specifically, the report provides the following highlights:

Low Estimate            996 MBbl         3.98 BCF
Best Estimate         1,832 MBbl         7.32 BCF
High Estimate         2,676 MBbl        10.70 BCF

ECONOMIC EVALUATION

Pilgrim also requested Gustavson Associates to complete economic runs with the estimated prospective resources and similar production profiles. This study will show estimate development schedules for Pilgrim's acreage and generate a forecast of future net revenues and discounted cash flow.

The following estimates are based on the best estimate of the prospective hydrocarbon resources. The initial net prices, for the purpose of the analysis are: $59.95 per barrel for the oil case and $4.97 per MCF for the gas case and include deductions for estimated future well abandonment costs.

      Best Estimate Net                  Best Estimate Net Present
      Revenue Before Income Tax          Value of Future Net Revenues
                                         (at 10% discount rate)
      $102,370,000                       $52,050,000

Pilgrim Petroleum President and CEO Rafael Pinedo said, "Pilgrim has strategically waited to develop its asset portfolio together with its venture partners to fully take advantage of its lease position. The projected figure is just an estimation based on previous Geologic studies of the area together with conservative oil price range. With Triple digit oil prices and current market conditions, a great level of profitability undermines the risk associated to oil and gas exploration/drilling. As we approach second quarter, we will communicate more on Drilling Plans for this year. We are very excited about the opportunities we have ahead."

The report is available for review on the Company's website.

About Pilgrim Petroleum Corporation

Headquartered in Dallas, Texas, Pilgrim Petroleum Corporation is a publicly traded company (PINKSHEETS: PGPM) (FRANKFURT: PHV). The company is acquiring oil and gas leases, producing properties, mineral rights and surface interest's primary on marginal fields. Once acquired, the company intends to develop each property to maximize the income from each 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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