Primary Petroleum Corporation

Primary Petroleum Corporation

January 23, 2008 11:50 ET

Primary Petroleum Closes AP Petroleum Company LLC Acquisition

CALGARY, ALBERTA--(Marketwire - Jan. 23, 2008) - Primary Petroleum Corporation (TSX VENTURE:PIE)(PINK SHEETS:PETEF) ("Primary" or the "Company") is pleased to announce that, further to the news release of November 29, 2007, it has acquired all the issued and outstanding units of AP Petroleum Company LLC ("AP Petroleum"), a private Montana corporation. AP Petroleum owns 100% interest in the Prairie Dell gas field, 31 producing wells, production facilities, 81,300 (gross) or 78,500 (net) acres of prospective oil and gas leases in Montana, and over 10 miles of 2D seismic and 3 sq. mi. of 3D seismic data. The overriding royalty is 12.5% on all of the leases owned by AP Petroleum.

The total consideration paid for this acquisition was C$3,662,459.87, comprised of C$2,698,420.67 cash and 1,205,049 units. Each unit consists of one common share and one share purchase warrant exercisable into one common share at a price of C$1.10 until January 18, 2009.

The Company paid a finder's fee in connection with the introduction of this acquisition made by the finder. Such finder's fee was paid in accordance with TSX Venture Exchange policies.

Primary is a growing oil and gas company actively engaged in exploration and development activities in Montana and Alberta with its head office located in Calgary and a representative office in Shelby, Montana. 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 Sedimentary Basin of the Western United States and Canada with a focus on acquiring assets in Montana and the surrounding states whereby Primary Petroleum maintains control of its own land plays and drilling operations.

To find out more about Primary Petroleum Corporation please visit the Company's website at

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

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