SOURCE: Pilgrim Petroleum Corporation

January 31, 2008 10:56 ET

Pilgrim Petroleum Reports 2007 Record Profitability and Performance

IRVING, TX--(Marketwire - January 31, 2008) - Pilgrim Petroleum Corporation (PINKSHEETS: PGPM) (FRANKFURT: PHV) is pleased to announce its financial results for the fiscal year ended December 31, 2007. Exceeding expectations, Pilgrim's Net Revenues for the year totaled $410,096 as compared with $1,471,507 in 2006, a decrease of 72% compared with 2006 as a result of debenture of properties last year. Net Income, on the other hand, was $33,725,949 compared with $516,814 last year, demonstrating an escalating increase year after year. On profitability and efficiency measures, Pilgrim proved to stand above average, showing a return on equity (ROE) of 94% and an ROA of 80% for the year ended December 31, 2006. On its financial leverage side, Pilgrim kept debt ratio at its minimum, reflecting just 15% while debt-to-equity ratio showed only 17%. Additionally, the company declared a 25% stock dividend to the holders of record as December 12, 2007. Additional developments worth mentioning are the board of the directors will be approving additional dividend options for holders of common stock and new additions to management.

Rafael Pinedo, President and CEO of Pilgrim Petroleum Corporation, commented, "2007 results definitely exceeded our expectations. Management strongly believes that Pilgrim Petroleum is a young, fast growing company with great potential. Every year Pilgrim commits to incremental improvements and with this strong start, Pilgrim will continue its growth strategy and development of its properties for the new fiscal year."

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 primary 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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