🕐18.05.12 - 22:27 Uhr

PRIMARY PETROLEUM UPDATE ON THE SOUTHERN ALBERTA BASIN BAKKEN NW MONTANA.




PRIMARY PETROLEUM (PIE:TSX.V and PETEF:  OTCQX) is pleased to provide you with the following update from Big Sky Petroleums SAB Bakken Play in NW Montana.

This play is a JV with FX Energy and American Eagle.



The positive takeaways from this update are:

1.

The location of the 81-3 well is located less that 10 miles North from Primarys current lease holdings.
2.

This data point will assist Primary in the stratigraphic mapping and correlation with its current drilling program that is underway
3.

This well data, along with the well data from Rosetta Resources, Newfield Exploration and our current drilling program will assist in the de-risking of this potential new shale oil discovery which is currently represented by a fairway of approximately 175 miles in length, 40 miles in width and is located in both NW Montana and Southern Alberta

SOUTHERN ALBERTA BASIN BAKKEN PLAY

Big Sky Petroleum�s Glacier Project is located in northwest Montana.

This project shares many similarities with the Williston Basin Bakken Play.

Both plays focus on the presence of porous, low permeability reservoirs adjacent to the world-class mature source rocks of the Bakken Shales.

The application of fracture stimulation in horizontal wellbores within this system has proved to be the key to unlocking the high potential of this type of resource play.

Our objective is to develop commercial production from Middle Bakken reservoirs adjacent to the demonstrated source rocks of the Bakken shales located within the Alberta Bakken source System.

Numerous studies have now confirmed that these Bakken shale�s are mature ( Vitrinite Reflectance (Ro) = .77 and Thermal Maturation (Tmax) = 445>) source rocks with excellent Total Organic Content (TOC = 8-14%).

In the most western portion of the play (Glacier County ) the Middle Bakken is comprised of 10-30 feet of dolomites with log porosities of 3-10%.

Rosetta Resources has reported oil saturated rocks with oil recovered from several fracture stimulated vertical wells covering an area of 900 square miles.

Furthermore, recent drilling of 4 horizontal wells has been completed with stabilized rates of 100 to 400 boepd.

Additional drilling is currently being pursued with reports that Rosetta believes they will be able to optimize their completion program in response to the data they have gathered.

In 2011, Big Sky and their partners re-entered and deepened a well (81-3, section 26-T32N/R6W) to investigate potential reservoir development in several intervals.

The results demonstrated similar reservoir characteristics in the Middle Bakken to those found in the Rosetta wells.

Sufficient encouragement from the post drilling analysis has resulted in the planned drilling (permitting underway) of a horizontal well immediately to the east of the 81-3 well.

In the eastern portion of the play (Toole County), situated over the north end of the Kevin Dome and eastward, the Middle Bakken is dominated by quartz siltstones with a dolomite matrix.

Mapping demonstrates 50-125 feet of Middle Bakken in an area of 700 square miles.

Porosity ranges from 3-12% with oil shows in mud logs and from cores.

While the presence of oil in the rocks is well documented, low primary permeability had discouraged previous operators from any attempt at completion.

However, the presence of a natural vertical fracture system has been documented from core data and the application of multi-stage fracture stimulation in horizontal wells should unlock the commercial viability of these known oil bearing reservoirs.

In 2011, Big Sky and partners began the drilling of three evaluation wells to core and study the commercial potential.

In late 2011, the first of several planned horizontal wells was drilled (14-29, section 29-T35N/R1W) with a 6256 ft MD and TVD 2580 ft.

A multi stage fracture stimulation was completed and the well flowed back.

Oil was recovered, with additional study currently underway.

This data will be used to design the completion and fracture stimulation program for the next horizontal well.

The second well (15-13, section 13-T24N/R2W) was drilled, cored vertically and encountered the expected thickness of high quality oil shows in the Middle Bakken.

The well is currently waiting on a completion design decision in anticipation of a horizontal well to be drilled in 2012.

The third well (4-3, section 3-T34N/R1E) was recently drilled and cored.

In addition to evaluation of the Middle Bakken, the well encountered shows in the deeper Nisku formation.

The Nisku is a 10 foot thick dolomite reservoir that is commercially produced from vertical wells in the immediate area.

The core is at the analysis laboratory, the data from the logs and core will be integrated with our model to determine future drilling for that area.

Big Sky�s Management and Technical team are very pleased with our results in the initial phase of this evaluation program and feel that our early presence in this play will position Big Sky Petroleum as a significant player in this emerging unconventional tight oil play.

We hope you find the above informative

Regards


PRIMARYPETROLEUM CORPORATION

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Primary Petroleum Corp
Suite 480, 700 4th Avenue SW
Calgary Alberta T2P 3J4
Canada

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