SOURCE: PrimeGen Energy Corporation

March 12, 2007 16:10 ET

PrimeGen Updates MB Gas Project in Alberta, Canada -- Pipeline Construction to Commence

DALLAS, TX -- (MARKET WIRE) -- March 12, 2007 -- PrimeGen Energy Corporation (OTCBB: PGNE) today wishes to update the ongoing operations at the MB Gas Project, located in the Manyberries area of Alberta, Canada. PrimeGen and its partner, MB Gas Inc. (a private Alberta oil and gas exploration company), are focused on the exploitation of targeted, low risk natural gas development opportunities in southeastern Alberta.

MB Gas Inc. is currently in the environmental stage of permitting and licensing for the first section of a three leg, 8 mile pipeline that will ultimately tie-in three natural gas wells owned and operated by Provident Energy Trust in the Manyberries area of southern Alberta. This work is scheduled to be completed within the next six months. The construction of the pipeline is scheduled to commence at the end of March 2007 dependant on the permitting process and suitable weather conditions. MB Gas and PrimeGen anticipate the pipeline construction to take approximately 60 days to complete.

MB Gas Inc. will earn up to a 67.5% net revenue interest before payout and 45.0% after payout from revenues generated from these wells once tied-in. PrimeGen has recently announced a funding and revenue sharing agreement with MB Gas whereby PrimeGen has agreed to advance a loan of up to $3 million to MB in return for the assignment of revenue from MB's oil and gas operations. Flow tests on the wells indicate that they should produce a minimum of 1.3 MMCF per day when connected.

This program is part of the 2007 development and operations plan to tie-in and produce natural gas from three Provident Energy wells and conduct a well survey to determine the geological potential of up to twenty (20) Sawtooth Formation locations in the immediate vicinity of the pipeline.

MB Gas Inc. is currently conducting a geological and engineering study of the area to determine whether the aforementioned twenty (20) locations could be developed for gas production within the next two years. MB Gas Inc. plans to tie-in five (5) currently shut-in or abandoned gas wells in the 2007 calendar year with the aim of becoming a producer in the 800 BOEPD range.

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 the operations of MB Gas in Alberta, Canada 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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