SOURCE: PrimeGen Energy Corporation

January 16, 2007 08:00 ET

PrimeGen Announces Kansas Operations Update

DALLAS, TX -- (MARKET WIRE) -- January 16, 2007 -- PrimeGen Energy Corporation (OTCBB: PGNE) ("PrimeGen" or the "Company") previously announced that it had purchased a 90% participation right to plays resulting from the analysis of a proprietary database. The database encompasses approximately one million acres in central Kansas, covering parts of Ellsworth, Salina, McPherson, Reno, Harvey, Kingman, and Sedgwick counties. The data is being analyzed by PrimeGen in order to generate oil and gas drilling opportunities which may have been overlooked by traditional exploration methods. In this regard, the Company and its partners are now conducting a drill test of 'Prospect 12,' a prospect which is included in the surveyed acreage. According to 3-D seismic analysis which appears to confirm RAM™ anomalies, Prospect 12 hosts what appears to be a significant and previously undiscovered oil pool. In this regard, casing has been set and this well is currently being drilled.

Mr. Marshall, Company Chairman, stated, "Although Kansas is not our primary area of focus at present, we are very interested in confirming that traditional 2- or 3-D seismic data when superimposed over the RAM™ generated data that we have purchased, will assist us to significantly narrow the scope of exploration in the massive area surveyed. While 2-D and 3-D seismic methods gather information based upon artificially induced sonic responses recorded at the surface, RAM™ technology identifies 'unique bright spots' by using proprietary computer software to process magnetic field data. Due to extremely high RAM™ and seismic correlations, we have chosen 'Prospect 12' as one of our first targets using this methodology. We feel that this calculated risk is made more acceptable by the relatively lower cost of proving the technology by drilling our shallower Arbuckle Formation targets first."

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include those relating to drilling operations in Kansas.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

ON BEHALF OF THE BOARD

PrimeGen Energy Corporation

William S. Marshall, Chairman

Contact Information

  • Investor Information:
    214.459.1217