Powder River Basin Gas Corp.
OTC Bulletin Board : PRVB

Powder River Basin Gas Corp.

June 23, 2005 07:00 ET

Powder River Continues Aggressive Acquisition Strategy; Company Expects Strong Third Quarter Results

CALGARY, ALBERTA--(CCNMatthews - June 23, 2005) - Powder River Basin Gas Corp., (OTCBB:PRVB), a revenue generating producer and acquirer of crude oil and natural gas, today announced it has purchased a 75% working interest (subject to a back in interest of 50% after payout) in the Hill Anderson # 1 well in Robertson County Texas.

The proven reserves are estimated at 25 BCF gas from the Cotton Valley and Travis Peak formations. PV 10% value is estimated at $20 million dollars. Operations began on June 16th with completion of the well expected by August 2005 which will start generating cash flow in the Company's third Quarter earnings. "We are fortunate to be partnered with Houston Petroleum Company, a 43 year old oil and gas producer with over 30 years extensive experience in oil & gas development in the Robertson County area," stated Brian Fox, CEO of Powder River Basin Gas Corp.

This agreement provides that the well earns approximately 700 acres, with the right to participate, on the same terms, in the entire 4200 acres under the continuous operation clause whereby the operators have 90 days after completion of this well to begin work on the next site.

Robertson County is in the middle of the very active and prolific Cotton Valley gas trend currently being aggressively developed.

Cost to complete the well is estimated at $650,000 with an independent engineering study, estimating a return of approximately $3 million dollars net per year.

Powder River Basin Gas Corp. is active in production and acquisition of crude oil and natural gas.

Powder River Basin Gas Corp. trades on the OTCBB under the symbol PRVB.

This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes that the expectations in such statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Contact Information

  • Powder River Basin Gas Corp.
    Patrice Nazareno
    Investor Relations
    Toll Free: 1-866-515-7708
    Powder River Basin Gas Corp.
    Stephanie Edgemon
    Investor Relations
    (602) 466-2422
    DeMonte Associates
    Cynthia DeMonte
    Public Relations
    (212) 605-0525