Pilgrim Seeking Additional Production on Wilbarger County Prospect

Pilgrim Petroleum plans to generate additional oil production on its recently acquired Mulloy Estate Lease located in Palo Duro natural gas resource basin in North Texas, Wilbarger County.

The Palo Duro Basin is located in the Texas Panhandle district and is bound on the north by the Amarillo-Wichita Uplift in Oklahoma, to the south by the Matador Arch-Permian Basin in West Texas. The Palo Duro Basin prospect, which is currently being evaluated for further development, has been compared to the Barnett Shale discovery. Barnett Shale is estimated to contain some 30 trillion cubic feet of natural gas. Management believes Palo Duro could prove to be one of the largest natural gas deposits in North America.

Currently, Pilgrim Petroleum has modest levels of production from this property and will start to use enhanced oil recovery techniques to boost additional production levels in the area.