🕐19.09.11 - 23:54 Uhr

PRIMARY PETROLEUM PROVIDES LATEST RESEACH REPORT FROM WOOD MACKENZIE ON THE SOUT
HERN ALBERTA BASIN BAKKEN FAIRWAY




Primary Petroleum (TSXV:PIE  OTCQX:PETEF) is pleased to provide you with the lastest Research Report on the Southern Alberta Bakken Basin in NW Montana and Southern Alberta from Wood Mackenzie Limited, a Houston based research firm.

Their research report; "Upstream Insight - September 2011" reports on TRACKING THE BAKKEN WEST TO ALBERTA AND MONTANA.

Below is the Executive Summary from the report.

Executive Summary

A surge in licensing along the Alberta and Montana border has signalled the arrival of the Alberta Bakken tight oil play.

The reward could be material, with our initial work suggesting that 2.6 billion barrels of oil could be recovered.

Crescent Point is the largest player on the Alberta side, whilst Rosetta and Newfield hold leading positions in Montana.

A wide mix of companies, including the likes of Shell, Murphy and Anschutz, have also staked a claim.

Few horizontal wells have targeted the formation to date, but early indications are promising.

Our base case well produces an average of 250 b/d in its first month for an all-in well cost of US$4 million.

Under the new Alberta royalty regime, our well breaks even at under US$70/bbl and generates an NPV10 of US$1.3 million1.

However, much of the prospective acreage lies on Blackfoot Indian land where the terms are generally more onerous.

For example, on Montana�s Tribal lands our well�s NPV10 decreases to US$0.9 million.

Despite the play�s potential, a large degree of uncertainty surrounds its development.

It is unknown how the play varies across its extent, or if consistent well results are achievable.

From a commercial standpoint, controlling costs and leveraging economies of scale will be critical.

Nonetheless, if encouraging well results continue, a period of consolidation will follow the land rush of 2010 and 2011.

To recevie your copy of the Research Report from Wood Mackenzie, if you are not a subscriber, please contact  the authors of the report listed below.

Mark Oberstoetter                          Siddhartha Sen

    

+1 (713) 470 1822                            +1 (713) 470 1651

We hope you find this update informative.

Thank you

PRIMARY PETROLEUM CORPORATION

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Primary Petroleum Corp
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Calgary Alberta T2P 3T4
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