BRIDGEWATER, NJ, Aug. 19 /PRNewswire-FirstCall/ -- PrimeGen Energy Corp. (Pink Sheets: PGNE - News; "PrimeGen" or the "Company") wishes to advise that as part of the recently announced participation agreement regarding the Company's oil and gas project in Timan-Pechora, Russia, the operator has notified PrimeGen that drilling of a fourth well commenced on August 12, 2009.
The fourth well has been titled as the "Kochmesskoye # 4" and is anticipated to reach a target depth by Monday, August 24, 2009. As part of the accelerated drilling program, preparations are underway on the fifth well site to begin immediate drilling shortly after the completion of the fourth well. The first well of the project was drilled and completed in the second quarter of 2009 and resulted in setting a new production record for the field of 1,200 barrels of oil per day. The second well's average production flow has been 920 barrels of oil per day. The third well's average production flow has been 1,140 barrels of oil per day. PrimeGen expects that an additional 3 wells will be drilled during the third quarter of 2009.
Using current pricing for Timan-Pechora crude oil, PrimeGen has now projected that the three wells have generated $7,465,000 in revenue to date or $77.3 million on an annual basis. Currently, oil at Timan-Pechora has been priced at over $65.00 per barrel.
About PrimeGen Energy Corporation
PrimeGen Energy Corp. is an oil and gas exploration Company whose primary focus is exploring and developing high potential unconventional resource plays. The Company's strategy and development assets are focused on a prolific and historic oil and natural gas resource play in Krasnoarmeiskome District, Saratovskoi Oblast in Russia. The Company is headquartered in Bridgewater, NJ and has offices in Moscow, Russia. PrimeGen Energy plans to use its comparative advantages in certain geographic regions to expand rapidly through strategic acquisitions of small oil and gas producing entities and production assets including wells, properties, operating equipment, and pipelines.
Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the Act 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.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the development of an early stage company in the alternative energy industry, its products, and the entry into new markets for such products. These forward-looking statements are made as of the date of this news release, and the Company assumes 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 the Company believes 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 consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's current and periodic reports filed from time to time with the Securities and Exchange Commission.
PrimeGen Energy Corp.
CONTACT: Robert Charlton, President, PrimeGen Energy Corp.
