Premium Petroleum, Inc.

Premium Petroleum, Inc.

September 14, 2005 08:30 ET

Premium Petroleum, Inc. Announces Boyne Lake Reserve Valuation

CALGARY, ALBERTA--(CCNMatthews - Sept. 14, 2005) - Premium Petroleum, Inc. (PINK SHEETS:PPTL) commissioned an internal engineering and geologic report on its Boyne Lake Gas Prospect, which is dated May 1, 2005. Based on oil at US$32 per barrel and gas at US$6.10 per Mscf, the net present value of Probable plus Possible Reserves discounted at 10% is US$4,391,530 per well.

At current prices, this would equate approximately US$8,000,000 per well.

Initial production rates are anticipated to be in the range of 0.5 to 1.0 MMscf per day, which at today's prices equates to a netback to the company of approximately US$90,000 to US$180,000 per month per well.

Bruce Thomson, President & CEO, states, "management sees the possibility given the success of the first well to drill 4 wells per section (640 acres), and also sees the possibility of acquiring two neighbouring sections; which could result in a potential 12 well program."

About Premium Petroleum, Inc.

Premium is set to exploit petroleum and natural gas reserves in an environment of unprecedented commodity prices and under the guidance of a highly qualified management and technical team.

Premium is an emerging junior oil and gas company financially well connected, coupled with a strong management and technical team focused on exploiting oil and gas reserves in the Western Canadian Sedimentary basin to 6000 feet in depth. Management intends to pursue a growth strategy through Land Assembly, Joint Ventures (Farmin/Farmout), and Acquisitions. The Company has assembled a seasoned team of managers and technical professionals in the areas of geology, engineering, and legal (Petroleum Landman). With the depth of the management and technical team we have assembled, Premium is poised for aggressive asset growth and development.

This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended; such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operations to vary significantly from those in prior periods, and those projected in forward-looking statements. Information with respect to these factors, which could materially affect the Company and its operations, are included on certain forms the Company files with the Securities and Exchange Commission.

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