Pilgrim Petroleum Announces General Energy Corporation Signs LOI for North Texas Oil Exploration Project

Pilgrim Petroleum Announces General Energy Corporation Signs LOI for North Texas Oil Exploration Project

General Energy Corporation today announced the completion of a Letter of Intent (“LOI”) to purchase 80% Working Interest (NRI 61%) for prospective oil resources in North Texas properties with leases covering a total of approximately 12,500 acres owned by Pilgrim Petroleum Corporation . The transaction outlined a sale price based on Pilgrim’s Net Present Value of $52.05 million. The total price equivalent for the transaction will be $41.64 million; which will be paid in cash and stock on closing. A definitive purchase agreement will be completed within 30 days.

The execution of the Letter of Intent will allow the completion of the first phase of the North Texas Drilling Program, which is expected to access over $102,370,000 in probable reserves. According to a Reserve Evaluation dated September 15, 2006, undertaken by Gustavson Associates, over 1.8 million barrels of oil are potentially recoverable and economic.

Pilgrim’s Chief Executive, Rafael Pinedo, commented, “We continue to focus on increasing production capacity and we look forward to re-affirming Pilgrim’s commitment to identify and negotiate attractive acquisitions of oil and gas properties with an exploitation upside.”

About Pilgrim Petroleum Corporation.

Pilgrim Petroleum Corporation (OTC: PGPM – News; FWB:PHV) is an independent oil and gas company based in Irving, Texas. The company is acquiring oil and gas leases, producing properties, mineral rights, and surface interests primary on marginal fields. Once acquired, the company intends to redevelop each property to maximize the income from each property by refurbishing and improving the existing production.

Forward-Looking Statements: The statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers’ preferences and trends. The words “estimate,” “possible,” and “seeking” and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements. The information herein is subject to change without notice. Pilgrim Petroleum Corporation shall not be liable for technical or editorial errors or omissions contained herein.


Pilgrim Petroleum Corporation Eddie Monet, 619-864-0166


Source: Pilgrim Petroleum Corporation

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