PGPM Pilgrim Petroleum Corporation (CE)

Pilgrim Petroleum Corporation (Pink Sheets:PGPM) is pleased to announce that the final Assessment on its interests in Archer and Wichita Counties Texas, prepared by Gustavson Associates has been completed. The report has an effective date of September 15, 2006, and evaluates Pilgrim Petroleum acreage located on the Bend Arch-Fort Worth Basin Province, Texas. Gustavson Associates was engaged by Pilgrim Petroleum Corporation to prepare the report as the due diligence basis to comply with Canadian TSX (Toronto Stock Exchange) requirements in addition to SEC guidelines. The report was prepared for the company using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 ("NI 51-101"). Additionally, Gustavson Associates conducted a scoping economic analysis of the Prospect using the �Best Estimate� for both an oil and gas future net revenues (before deductions of income taxes). Specifically, the report provides the following highlights: Low Estimate 996 MBbl 3.98 BCF Best Estimate 1,832 MBbl 7.32 BCF High Estimate 2,676 MBbl 10.70 BCF ECONOMIC EVALUATION Pilgrim also requested Gustavson Associates to complete economic runs with the estimated prospective resources and similar production profiles. This study will show estimate development schedules for Pilgrim�s acreage and generate a forecast of future net revenues and discounted cash flow. The following estimates are based on the best estimate of the prospective hydrocarbon resources. The initial net prices, for the purpose of the analysis are $59.95 per barrel for the oil case and $4.97 per MCF for the gas case and include deductions for estimated future well abandonment costs. Best Estimate Net Revenue Before Income Tax Best Estimate Net Present Value of Future Net Revenues (at 10% discount rate) $102,370,000� $52,050,000� Pilgrim Petroleum President and CEO Rafael Pinedo said, "We are very pleased to have interest in such an outstanding exploration prospect with the potentially dramatic high impact upside potential of this acreage. The Gustavson report is consistent with historical estimates of the resource potential and risks for the blocks and the report clearly confirms our belief that we have in our hands a world-class exploration prospect. As we move into this next phase of commencing the exploration program, we will continue to work to advance on our re-activation program and aggressively finish our audit and become a fully reporting company." The report is available for review on the Company's website. About Pilgrim Petroleum Corporation Headquartered in Irving, Texas, Pilgrim Petroleum Corporation is a publicly traded company (PGPM). 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 develop each property to maximize the income from each 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. 2006 Pilgrim Petroleum Corporation. 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 (Pink Sheets:PGPM) is pleased to announce that the final Assessment on its interests in Archer and Wichita Counties Texas, prepared by Gustavson Associates has been completed. The report has an effective date of September 15, 2006, and evaluates Pilgrim Petroleum acreage located on the Bend Arch-Fort Worth Basin Province, Texas. Gustavson Associates was engaged by Pilgrim Petroleum Corporation to prepare the report as the due diligence basis to comply with Canadian TSX (Toronto Stock Exchange) requirements in addition to SEC guidelines. The report was prepared for the company using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 ("NI 51-101"). Additionally, Gustavson Associates conducted a scoping economic analysis of the Prospect using the "Best Estimate" for both an oil and gas future net revenues (before deductions of income taxes). Specifically, the report provides the following highlights: -0- *T Low Estimate 996 MBbl 3.98 BCF ---------------------------------------------------------------------- Best Estimate 1,832 MBbl 7.32 BCF ---------------------------------------------------------------------- High Estimate 2,676 MBbl 10.70 BCF ---------------------------------------------------------------------- *T ECONOMIC EVALUATION Pilgrim also requested Gustavson Associates to complete economic runs with the estimated prospective resources and similar production profiles. This study will show estimate development schedules for Pilgrim's acreage and generate a forecast of future net revenues and discounted cash flow. The following estimates are based on the best estimate of the prospective hydrocarbon resources. The initial net prices, for the purpose of the analysis are $59.95 per barrel for the oil case and $4.97 per MCF for the gas case and include deductions for estimated future well abandonment costs. -0- *T Best Estimate Net Present Value of Best Estimate Net Revenue Before Future Net Revenues (at 10% Income Tax discount rate) ----------------------------------- ---------------------------------- $102,370,000 $52,050,000 ----------------------------------- ---------------------------------- *T Pilgrim Petroleum President and CEO Rafael Pinedo said, "We are very pleased to have interest in such an outstanding exploration prospect with the potentially dramatic high impact upside potential of this acreage. The Gustavson report is consistent with historical estimates of the resource potential and risks for the blocks and the report clearly confirms our belief that we have in our hands a world-class exploration prospect. As we move into this next phase of commencing the exploration program, we will continue to work to advance on our re-activation program and aggressively finish our audit and become a fully reporting company." The report is available for review on the Company's website. About Pilgrim Petroleum Corporation Headquartered in Irving, Texas, Pilgrim Petroleum Corporation is a publicly traded company (PGPM). 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 develop each property to maximize the income from each 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. 2006 Pilgrim Petroleum Corporation. 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.