NEWS RELEASE Trading Symbol: Canada: TSX-V: PIE USA: OTCQX: PETEF
Primary Petroleum Advances its Alberta Basin Bakken Prospect in Western Montana with $14 million CAPEX Exploration Program
March 31, 2011 – Calgary Alberta - Primary Petroleum Corporation (TSX-V: PIE; PK:PETEF) (“Primary” or the “Company”) is pleased to update its shareholders and the investment community on the advancement into an exploration phase on its' 242,000 net acre Pondera-Teton prospect located in the southern Alberta Basin Bakken fairway in Western Montana.
pleased to update its shareholders and the investment community on the advancement into an exploration phase on its' 242,000 net acre Pondera-Teton prospect located in the southern Alberta Basin Bakken fairway in Western Montana.
The Company intends to commence its $14 million CAPEX exploration program with a proprietary 3D seismic program of up to 100 sq. miles covering four prospect areas over its 242,000 net acres, followed up with six vertical wells and one horizontal test well to analyse and test the Lodgepole, Bakken and Three Forks Formations for exploitation and development. The commencement of the 3D seismic program will start next week, and the Company expects the seismic crews to be in the field in late May. The current exploration program has been planned to enable Primary to spud its first vertical test well by late summer and complete its CAPEX program by the Company’s fiscal year-end.
“We are very excited to be moving forward into the exploration phase on our Alberta Basin Bakken prospect in Western Montana. Our Land Acquisition strategy will continue on a more focussed approach to enhance our current 3D seismic program. The proposed drill program will allow our technical team’s ability to further evaluate, understand and de-risk our Alberta Basin Bakken prospect for future exploitation and development with an industry partner.” states Mike Marrandino, President and CEO. “The latest Industry Research reports 44 Companies on both sides of the border have acquired acreage in the Alberta Basin Bakken area of interest in southern Alberta and western Montana that outlines a fairway of approximately 175 km (110 mi) north-south, and 55 km (35 mi) east-west. Todate, there has been over 48 wells identified and approximately $0.5 billion spent on land acquisition, exploration and drilling that are seeking to exploit this early-stage Bakken discovery area that has the vast potential for multiple of billions of barrels.”
Primary Petroleum is continuing ongoing discussions with potential Industry Partners that have expressed an interest in a Joint Venture opportunity with its Western Montana Bakken Fairway prospect.
About Primary Petroleum Corporation - Primary Petroleum is a junior oil and gas company engaged in exploration and development activities in Montana and Alberta and currently holds substantial land positions in two unconventional tight oil plays in North America; the Saturn Prospect in the Williston Basin and the Pondera-Teton Prospect in the Southern Alberta Basin . 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 qualified industry partners to exploit and develop them. To learn more about us, please visit our website at: www.primarypetroleum.com