SOURCE: PrimeGen Energy Corporation

March 22, 2007 16:10 ET

PrimeGen - Fayetteville Shale Project

DALLAS, TX -- (MARKET WIRE) -- March 22, 2007 -- PrimeGen Energy Corporation (OTCBB: PGNE) ("PrimeGen" or the "Company") owns a 10% working interest in approximately 40,000 acres in the Fayetteville Shale play located in Van Buren, Stone and Cleburne Counties, Arkansas. The Company is extremely pleased to have acquired this significant right of participation in what is considered by many industry experts to be the 'next' important on-shore natural gas play.

The Fayetteville shale contains an unconventional gas reservoir located on the Arkansas side of the Arkoma Basin, ranging in thickness from 50 to 550 feet and ranging in depth from 1,500 to 6,500 feet. The shale is a Mississippian-age shale that is the geologic equivalent of the Caney Shale found on the Oklahoma side of the Arkoma Basin and the Barnett Shale found in north Texas. The Company will participate in the play along side such industry giants as Chesapeake Energy Corporation and Southwestern Energy Company. Both companies have reported developmental success and significant increases in proven reserves by virtue of initial drilling of acreage positions in the area. Significantly, PrimeGen expects to benefit directly from their expertise in adding its own area reserves. Chesapeake Energy Corporation, the third largest independent producer of natural gas in the U.S., has rapidly built a sizable acreage position in the play; from essentially no acreage at the end of 2004, to their presently reported 1 million plus net leasehold acres, the largest acreage position in the area. The geological characteristics of PrimeGen's area interests are virtually identical.

William S. Marshall, Chairman of the Company, stated: "As a comparatively young company, we are extremely fortunate that, through our close relationships with industry partners and consultants, we have succeeded in acquiring such a strong project like Fayetteville. It is very unusual for a startup company such as ours to be in the same room as industry luminaries and to participate on a similar basis. We have a reasonable expectation that our success in the area will be very similar to that obtained thus far by the other participants."

About PrimeGen Energy Corporation (OTCBB: PGNE)

PrimeGen Energy Corporation is assembling a portfolio of North American oil and natural gas plays selected for their existing or past production history or high upside exploration potential. PrimeGen Energy leverages its extensive network of contacts within the North American oil and gas community to acquire interests in leaseholds that either are in production, near to production, or demonstrate significant exploration potential. The Company is focused on some of the most commercially active and prospective oil and gas regions of Canada and the United States. Through smart acquisitions, advantageous partnerships, proven industry expertise and sound corporate management, PrimeGen is working to generate revenue, bankable reserves, self-sustaining production, and shareholder value.

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 our Fayetteville operations of and any future benefits to PrimeGen.

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:

    1-888-417-5454