Primary Petroleum Corporation

Primary Petroleum Corporation

October 16, 2007 10:00 ET

Primary Petroleum Approves Phase One Drilling Program of 11 Locations Out of a Possible 44 Locations on Two of Its Montana Properties

CALGARY, ALBERTA--(Marketwire - Oct. 16, 2007) - Primary Petroleum Corporation ("Primary" or the "Company") (TSX VENTURE:PIE) is pleased to announce the commencement of its significant drilling program on its two key prospects in Montana at an estimated cost of $5 million. The Teton and Saturn Prospect covers approximately 120,000 net acres.

Teton: - The 3D seismic program on the Teton Prospect is currently underway. Surveying commenced on October 5, 2007 with shooting and recording underway on October 10, 2007. It is anticipated that the field program will be completed by October 20th, with processing and interpretation finalized by November 20, 2007. Primary is projecting that the drilling of the first of the eight well drilling program should commence in early December.

The key targets for these multi-zone wells are the Madison oil and Sunburst gas. The offsetting Gypsy Basin field has produced over 510,000 barrels of oil from 2 sections (1280 net acres) to date from the Madison formation. The offsetting Bills Coulee field has cumulative production to date in excess of 94 thousand of barrels of oil equivalent from the Sunburst formation. Initial production from Bills Coulee field was greater than 114 barrels of oil equivalent/day/well.

Primary's 8 well program on its Teton prospect has targeted 2 wells on each of 4 similar type Gypsy Basin fields. To date Primary has identified 36 potential drill targets on its Teton prospect. The Company is projecting 120 barrels of oil/day/well and 200,000 barrels of oil per 160 acres (1/4 section) from the Madison formation and a 1 million cubic feet of gas/well with reserve estimates of 0.24 billion cubic feet of gas from the Sunburst formation. The current acreage leased for the Teton prospect is approximately 97,460 acres.

Saturn: - Preparation for the 3D seismic program on the Saturn Prospect in Daniels County is nearing completion. Lease acquisition is almost finished and the application for County approval has been submitted. It is anticipated that the seismic crew will be on sight by November 1, 2007. A 3-well drilling program on the Saturn prospect is planned immediately thereafter. The multiple horizon Mississippian oil play consists of both the Mission Canyon and McGowan dolomitic limestones. The offsetting Cabaret Coulee field (less than one mile from the 1st drill location) produced in excess of 450,000 barrels of oil from one section (640 net acres). Initial production tests in the Cabaret Coulee field have been as high as 1440 barrels of oil/day/well with a production rate of 780 barrels of oil/day.

Primary's 3 well program on its Saturn prospect has targeted very similar formations as found in the Cabaret Coulee field. To date Primary has identified over 8 potential drill targets on its Saturn prospect. The company is projecting 200 barrels of oil/day/well and up to 300,000 barrels of oil from the McGowan and Mission Canyon formations per 160 acres. The current acreage leased for the Saturn prospect is approximately 20,130 net acres.

Primary is the operator on all of its Montana prospects. Its leasing program is continuing based on its re-interpretation and evaluation of over 250 miles of 2D seismic over its prospective lands. To-date, the Company has under lease on its 5 prospects in excess of 292,564 net acres.

New Projects: - Primary continues to look for new opportunities in Montana. Currently two Bakken prospects, one Red River prospect and a producing multi-zone gas field with an extensive land package for future exploration & development are being considered. In-house prospect generation is on-going.

About Primary Petroleum Corp (PIE): is a growing oil and gas company actively engaged in exploration and development activities in Montana and Alberta with its head office in Calgary and offices in Shelby, MT. Primary's management and technical teams include accomplished oil and gas exploration and development personnel, with extensive experience. The Company's mandate is to continue to aggressively acquire oil & gas prospects of merit in Montana and surrounding states located in the Sedimentary Basin whereby it maintains control of its own land plays and drilling operations. For further information, please visit our website at


This news release has been prepared by management. This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements. We seek safe harbour.

CUSIP # 74161X107

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information