Precision Petroleum Corporation
OTC Bulletin Board : PPTO

Precision Petroleum Corporation

April 29, 2011 16:00 ET

Precision Petroleum Corporation: Montana Powder River Basin Farmout Agreement

OKLAHOMA CITY, OKLAHOMA--(Marketwire - April 29, 2011) - Precision Petroleum Corporation (OTCBB:PPTO) -

Precision Petroleum Corporation and its partners have entered into an agreement with CAVU Resources, Inc. to sell its 50% share of the Montana Prospect in the Powder River Basin which consists of a 1,600 acre lease with additional acreage lease options at a future date. Also included in the offer is that Precision etal will receive $150,000 in cash, a 1.6667% ORRI in the 1,600 acre lease, and 2,500 shares of CAVU Resources, Inc. free trading shares. This area of interest is in the eastern half of Montana in the Powder River Basin which is predominately located under the Crow Indian Reservation and has only been explored in the outer perimeter of the reservation of which a few of those penetrations have been met with lucrative production. There are at least six documented zones of interest capable of producing oil and/or gas down through the Tensleep Sand (base of the Pennsylvanian). Richard Porterfield, President of Precision Petroleum Corporation, feels this acreage is an excellent opportunity to build oil & gas reserves and prospect for production for years to come. Precision is eager to start the drilling program and feels the new drilling activity will energize the local area as well as spur drilling nationally as oil & gas prices steadily climb thus elevating the net worth of Precision Petroleum Corporation.

Precision Petroleum Corporation is an independent energy company engaged in the acquisition, exploration and development of oil and natural gas properties in North America. Precision's objective is to seek out and develop opportunities in the oil and natural gas sectors that represent a low risk opportunity. As well, Precision aims to define larger projects that can be developed with Joint Venture Partners. More information about the company is available at www.precisionpetroleumcorp.com.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company does not intend to, and undertakes no duty to, update any such forward looking statements to reflect the impact of circumstances or events that arise after the date such forward looking statements were made.

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