Petrogen Commences Pipeline Hook-Up Of Eh#3a Well

Petrogen has returned to Matagorda Island to complete the Emily Hawes #3A wellbore ("EH#3A") for hook-up to the Company's recently-purchased natural gas pipeline. The Company anticipates commencement of natural gas production and sales revenues during this second quarter of 2005 from the EH#3A well.

"In anticipation of the EH#3A well hook-up, we have been positioning the Company to take advantage of opportunities that we believe can successfully fulfill strategic initiatives that will provide the Company an ongoing platform to fully develop and expand operations and acreage position on Matagorda Island and within the Texas Gulf Coast area natural gas play," stated Chairman and CEO, Sacha H. Spindler. "With our recent purchase of the Matagorda Island pipeline and our working interest on Emily Hawes Field recently being increased to 75%, the tie-in and anticipated commencement of natural gas production and sales from the EH#3A discovery well can secure the initial stages of the integration of our ongoing strategic plans as a Texas Gulf Coast operator."

On November 23, 2004, Petrogen announced that it successfully tested natural gas from the EH#3A well from the lower Miocene M1 sand with an absolute open flow being tested at 1,998 mcf per day; 978 mcf per day was tested on a 14/64's choke with flowing tubing pressure of 1,395 psi and a final shut-in pressure of 1,950 psi. Since that time, the Company has designed its production facilities and recently confirmed shut-in tubing pressure of 1,750 psi at the wellhead in preparation for hook-up to its pipeline.

Mr. Spindler further stated, "The EH#3A completion and pipeline hook-up cements the inflection point of our business model from an investment-stage company to an operational-stage company, and provides the platform to 'prove up' a portion of the Emily Hawes Field's estimated recoverable 12.3 billion cubic feet (bcf) of gross potential, formerly producing reserves."

Petrogen's Emily Hawes Field property is located approximately 90 miles southwest of Houston , Texas within the prolific oil and gas producing Miocene-Frio trend of the onshore and offshore Texas Gulf Coast . Future near term plans include the expansion of operations through the development of a number of infill and step-out drilling locations targeted at the Basal Miocene Sands within Emily Hawes Field after the completion and hook-up of the EH#3A well.

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