CALGARY, ALBERTA--(Marketwire -02/29/12)- Primary Petroleum Corporation (TSX-V: PIE.V - News)(OTCQX: PETEF.PK - News) ("Primary" or the "Company") has completed its annual review of non-core assets and the Board of Directors has approved the divestiture of its Saturn Prospect in Daniels County, NE Montana for US$3,400,000. This sale price represents a considerable gain to Primary based on its original investment in the area. With a strong balance sheet in excess of CDN$20 million in working capital, no debt, a joint venture with a fully carried and funded US$41 million exploration program consisting of 3D seismic, six vertical test wells and six horizontal wells, Primary continues to remain focussed for the balance of 2012 on its Southern Alberta Basin prospect in Pondera and Teton counties in NW Montana.
Pondera-Teton, Southern Alberta Basin Update
Primary has been successful in acquiring exposure to over 361,000 gross acres (500 sections) of land, delivering approximately 304,000 net acres (337 sections) within the area of interest. The net acreage amount is subject to change based on the provisions set out in a Sale and Joint Venture Agreement with our U.S. partner (as per the Company's News Release dated Oct. 19, 2011) The Company's land acquisition strategy continues to be driven by science, with an increase in activity and pricing noticed in the area since the beginning of the 2012 calendar year
3D Seismic Program
Primary has completed 93 sq. miles of 3D seismic to-date, with the completion of our most recent, Eureka Lake program. The Company is reviewing an additional 47 sq. mile program to be carried out in two programs this spring. Upon completion of these 3D seismic programs, Primary and its JV Partner will have a total of 163 sq. miles of 3D seismic coverage over its leases, including 23 sq. miles of 3D seismic completed in 2008.
Vertical Stratigraphic Test Drilling Program
The Company commenced the vertical stratigraphic test-drilling program in Nov. 2011 and has currently completed drilling its fourth vertical well in the planned program of six wells. All vertical wells have been logged to collect extensive well data along with a 120 ft (36.5metre) section of core from the Bakken-Three Forks and adjacent formations for analysis. Primary has received core data from its first two wells and is pleased with the preliminary results. The six-well vertical program is estimated to complete by the middle of April and a more detailed update will be disseminated, once all data from the vertical program has been evaluated.
About Primary Petroleum Corporation - Primary is a junior oil and gas company engaged in exploration and development activities in Montana and currently holds substantial land positions in an unconventional tight oil play. The Company's mandate is to continue to acquire strategic land positions of merit in the Sedimentary Basins of the Western United States and Canada and seek out qualified industry partners to exploit and develop our acreage. To learn more about us, please visit our website at: www.primarypetroleum.com.
FORWARD LOOKING STATEMENTS DISCLAIMER: Certain statements in this document may contain "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking statements or information include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
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