SOURCE: Platinum Energy

July 15, 2008 16:30 ET

Platinum Energy Resources, Inc. Provides Operations Update

NEW YORK, NY--(Marketwire - July 15, 2008) - Platinum Energy Resources, Inc. ("Platinum Energy") (OTCBB: PGRIU) (OTCBB: PGRI) (OTCBB: PGRIW) today announced updated operational metrics and corporate initiatives for the period ended June 30, 2008.

Platinum's net daily production averaged 1,240 BOEPD (Barrels of oil equivalent per day) during June 2008. This represents a 27% increase in production volumes when compared to the average daily production for the first quarter of 2008. Production increases were primarily attributable to new drill activity, in addition to three key workovers.

Robert L. Kovar, Chief Operating Officer of Platinum Energy, stated, "We are committed to building an outstanding organization with the addition of several key personnel including: Kevin Neeley, Vice President - Exploitation; Dean Mathiews, Operations Manager; and Chester Sackett, Executive Director of Health, Safety, Security and Environmental. These key leaders are intensifying the focus on our growth plan and prioritizing our opportunities to assist in achieving our goal of 2,000 BOEPD by the end of 2008."

"We are also in the final stages of our search for a CFO and we expect to announce an appointment in the near future," added Tim Culp, Platinum Energy's Chairman of the Board. "Our new leaders are integrating well with our existing staff, and their enthusiasm is contagious. Our current personnel are excited about the renewed focus on growth and the expansion of our capital program."

Commenting on his initial assessment of Platinum Energy's opportunities, Neeley said, "We have an excellent property base and our current focus is to prioritize our capital projects. We have already begun a pilot upgrade to our waterflood in the Ira Unit in Scurry County, Texas and expect to expand the waterflood by year end in an effort to significantly increase production by the first quarter of 2009. We have also completed a 3D seismic survey in Palo Pinto County, Texas, and once the results of the survey are evaluated, we plan to drill several Barnett Shale horizontal wells in the fourth quarter. If successful, these wells will be the initial phase of an expanded drilling program on this acreage in 2009."

"We successfully re-entered an idle well and re-established production in the Wilcox interval," added Jim Dorman, Senior VP of Geology, commenting on the Tomball field. "The well is currently producing approximately 600 MCFD before stimulation from an interval that had been abandoned over 50 years ago. We plan to fracture stimulate the well to clean up skin damage that occurred when the well was initially drilled in the 1950s with the obvious goal of increasing productivity. We have plans to re-complete another well in the Tomball Field to re-establish production from a similar abandoned Wilcox zone. If successful, we may expand development of the Wilcox formation within the field."

Barry Kostiner, Chief Executive Officer of Platinum, added, "Our focus in the second quarter has been on strengthening our organization and integrating the Maverick Engineering, Inc. acquisition. We have been able to leverage synergies with Maverick to improve production and cash flow. With the additional resources now available to us, we expect to deliver improved results over the increases we have already seen in the second quarter. We are extremely excited about the momentum that we are beginning to build."

About Platinum Energy

Platinum, based in Houston, Texas, is an oil and gas exploration and production company that has approximately 37,000 acres under lease in relatively long-lived fields with well-established production histories and is currently engaged in drilling, developing and exploiting these properties to provide long-term growth in stockholder value. Platinum's strategy calls for the use of hedge financing to maximize profit and reduce risk resulting from volatile energy markets.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words such as "believe," "expect," "anticipate," "plan," "potential," "continue," "intend" or similar expressions. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. Such forward-looking statements are based upon current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements contained in this press release may include statements about future financial and operating results. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. In any forward-looking statement in which Platinum expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. All forward-looking statements included in this press release are based on information available to Platinum on the date hereof. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, exploration risks, uncertainties about estimates of reserves, competition, government regulation, costs and results of drilling new projects, and mechanical and other inherent risks associated with oil and gas production.; as well as other relevant risks detailed in Platinum's filings with the Securities and Exchange Commission. Platinum does not assume any obligation to update the information contained in this press release.

Contact Information

  • Contact:
    Thomas J. Rozycki, Jr.
    CJP Communications for
    Platinum Energy Resources, Inc.
    Public & Investor Relations
    212-279-3115 x208
    trozycki@cjpcom.com