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Kochmesskoye No. 4 Oil Well Reaches Target Depth

Source: Reuters 8/24/2009, Location: Asia

PrimeGen Energy Corp. wishes to advise that the drilling operator at the previously announced Timan-Pechora Project has reported that the drilling of Kochmesskoye # 4 well has reached total target depth yesterday at 3:35pm.

Testing of any potentially productive oil bearing zones has commenced. PrimeGen will be advised as to the commercial viability of the well and productive oil flow rates upon the completion of testing, which is anticipated by early next week. The well is the fourth of a proposed development program targeting a minimum of 30 oil wells to be drilled.

As part of the accelerated drilling program, a fifth well is scheduled for immediate drilling shortly after the results of the third well are announced. The first well of the project was drilled and completed on June 17, 2009, and resulted in setting a new production record for the field of 1,200 barrels of oil per day. PrimeGen expects that an additional 3 wells will be drilled during the third quarter of 2009.

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