SOURCE: PrimeGen Energy Corporation

March 20, 2007 16:10 ET

PrimeGen Reports on Its Fayetteville Shale Project

DALLAS, TX -- (MARKET WIRE) -- March 20, 2007 -- PrimeGen Energy Corporation (OTCBB: PGNE) ("PrimeGen" or the "Company") wishes to report on its Fayetteville, Arkansas shale gas project.

Through its ownership of 100% of the Class A Interest of FS Sub-participation #1 LP, a Texas-based limited partnership, the Company owns a 10% working interest (the "Working Interest") in approximately 40,000 acres in the Fayetteville Shale play (the "Fayetteville Project") located in Van Buren, Stone and Cleburne Counties, Arkansas.

The working interest partners in the play are nearing the end of the lease consolidation process and plan to drill the first wells in the next several months. It is estimated that each well will be drilled at a cost of approximately $2 million, or $200,000 net to PrimeGen's working interest. The acreage hosting this 'unconventional' shale gas play will be developed primarily by the drilling of horizontal wells with fracture stimulation as required. There is a major (16") gas pipeline within close proximity.

The Fayetteville Shale in Arkansas is in the early stages of development to extract shale-gas in a fashion that is analogous to the successful development of the Barnett shale of Texas. Many mid-continent gas producers consider this region to be the next promising unconventional shale-gas play. The Fayetteville Shale Play is currently being explored and developed by, among others, SouthWestern Energy ("SECO"), Chesapeake Energy Corp., Shell Oil Company, Maverick Oil and Gas, Inc. and Hallwood Energy Corp. SECO recently announced an increase to their daily net gas production for the Q2 period of 50 MMCF per day, up from 20 MMCF in Q1. SECO now is producing from 148 wells (94 being horizontal) and it plans to drill 175-200 additional wells through 2007.

In other Company news, Mr. Gordon Samson has resigned as a director and officer of PrimeGen for personal reasons and the Company wishes him every success in the future.

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

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