Primary Petroleum Corporation
TSX VENTURE : PIE
PINK SHEETS : PETEF

Primary Petroleum Corporation

September 20, 2010 13:30 ET

Primary Petroleum Increases Land Holdings to 150,000 Gross/Net Acres (234 Sections) on Its Alberta Basin Bakken Project in Western Montana

CALGARY, ALBERTA--(Marketwire - Sept. 20, 2010) -

Highlights:

  • Increases land holdings by 23,000 gross/net acres to 150,000 gross/net acres on its Western Montana Alberta Basin Bakken Prospect.
  • Is the largest contiguous land holder south of the Blackfeet Indian Reservation located within the Alberta Basin Bakken fairway in Western Montana.
  • Identifies 12 drilling locations to evaluate multi-zone oil potential formations including the Lodgepole; Bakken; Three Forks and Nisku.

Primary Petroleum Corporation (TSX VENTURE:PIE)(PINK SHEETS:PETEF) ("Primary" or the "Company") is pleased to announce that its land acquisition strategy continues to be successful and has added a further 23,000 gross/net acres to its Western Montana Alberta Basin Bakken Fairway. The Company currently holds in excess of 150,000 gross/net acres (234 gross/net sections) and is the largest contiguous land holder south of the Blackfeet Indian Reservation.

Primary's ongoing geological review of its proprietary 26 sq. miles of 3D seismic that was shot in 2008 over its lands in Western Montana, along with the data that continues to be collected from the 18 existing wells that have penetrated the Bakken formation in the past, has enabled Primary at this time to identify up to 12 potential drilling locations to initially evaluate the multi-zone formations that currently have been identified as possible oil bearing, including the Lodgepole, Bakken, Three Forks and Nisku, with the Sunburst and Madison for shallower oil bearing formations.

The Company holds over 170,000 gross/net acres (266 sections) in two Bakken prospects in the Alberta Basin Bakken Fairway of Western Montana and in the Williston Basin, approx. 50 mi. northeast of the Elm Coulee Bakken Oil Field in Eastern Montana.

Primary has issued call right exercise notices to holders of warrants under the Corporation's unit offering that closed in May 2010 (Call Notices). The Call Notices require the exercise of all such unexercised warrants in accordance with their terms within 30 days of delivery. Upon exercise of all outstanding warrants, the Company is expected to receive approximately $4 million dollars.

About Primary Petroleum Corporation: Primary is a junior oil and gas company engaged in exploration and development activities in Montana and Alberta. The Company's mandate is to continue to acquire strategic land positions of merit in the Sedimentary Basin of the Western United States and Canada and seek out industry partners to exploit and develop them.

Investors are cautioned that this news release contains forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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