🕐29.01.12 - 20:54 Uhr

PRIMARY PETROLEUM - S. ALBERTA BASIN UPDATE - CAPITALONE SOUTHCOAST OVERVIEW




PRIMARY PETROLEUM (PIE:TSX.V and PETEF: OTCQX) is pleased to provide you with the following OVERVIEW on the Southern Alberta Basin by Richard Tulles at CAPITALONE SOUTHCOAST, INC.

Based on the valuations identified below by Capital One this would translate to a 2X in Primary Petroleum�s  current share price at their acreage valuation of $500 - $700/acre and an approximate 6X in Primary Petroleum�s current share price based on their acreage valuation of $1,750/acre.


Note: Primary Petroleum holds approx.

300,000 gross and 200,000 net acres in the S.

Alberta Basin in NW Montana.



To download a copy of an activity map in NW Montana that outlines Primary Petroleums leased acreage in proximity to Rosetta Resources and Newfield Exploration, please click on the following link:

http://www.primarypetroleum.com/index.php?page=operations&subpg=western_montana#

Energy - Exploration & Production
MUR Well Provides Slight S.

Alberta Basin Encouragement

During its 4Q conference call yesterday (January 26, 2012), MUR discussed a 300+ boe/d well drilled into the Three Forks Formation in the Southern Alberta Basin.

The well, drilled on the Canadian side of the play near the US border, has naturally flowed for 42 consecutive days near 300 boe/d on a small choke.

The well does provide a small bit of encouragement for several of our covered names (ROSE, NFX, KWK, SGY) that hold acreage in the play (mainly on the US side) but have yet to report a commercial hzl well.

We currently assign a minimal value of $500 - $750/acre to these covered companies for the play.

But should the companies eventually crack the code and wells average 225 Mboe EURs & $4MM well costs, the acreage value could jump to $1,750/acre Based on $1,750/acre, we could add ~$7 to our ROSE valuation (300K net acres in the play), $3 to NFX (320K net acres), $1 to KWK (175K net acres), and 50c to SGY (35K net acres).



Richard Tullis

(504) 593-6118
Sales: 1-800-666-9174
Trading: 1-800-333-2005
CAPITAL ONE SOUTHCOAST, INC - 909 POYDRAS STREET - SUITE 1000 - NEW ORLEANS, LA 70112

We hope you find the above information informative

PRIMARY PETROLEUM CORPORATION

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

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