Petrogen Begins Recompletion Work at Baxterville Field

Petrogen Corp. has commenced recompletion operations at the Dunn and Swann Tracts of its Baxterville Field property in Marion and Lamar Counties, Mississippi. Petrogen currently controls approximately 680 acres of Baxterville Field through its interests in the Dunn and Swann Tracts and the Hooper Lease. This second stage of Petrogen's recompletion developments on its Mississippi interests will initially focus upon recompleting the Moody numbers 1, 5 and 6 oil wellbores, all of which are currently shut-in due to varying mechanical reasons.

Petrogen mobilized a recompletion rig to the site of the Moody # 6 wellbore to commence recompletion operations. Petrogen anticipates that upon a successful recompletion, production may be re-established at approximately 60 BOD from the wellbore, the amount of daily production which the wellbore was producing prior to its recent shut-in status. The Moody # 6 was originally completed to a depth of 8,997 feet where it had initial production of 150 BOD. If successful production is re-established, Petrogen will allow time for data to be collected to help the Company's technical staff ascertain the viability of secondary recompletion that could stimulate an increase in daily production.

Work to date has included removal of parted tubing and bottom hole equipment to repair existing casing; when initially entered, oil was encountered at a depth of 180 feet. Workover crews are currently squeezing the wellbore casing to repair the casing, and once completed, the wellbore will be cleaned out to bottom with a casing scraper and bit, and a production string will then be run to re-establish production.

The current initiative begins what marks an extensive workover program on the Dunn and Swann Tracts, Baxterville Field, which the Company will continue through the summer months. Petrogen's interest in the Baxterville field area includes four oil wellbores and one gas wellbore, as well as numerous new well drill sites upon known oil and gas reserves in Proven Undeveloped (PUD) wellbore locations, which provide further development potential for the Company as production from the existing wellbores is re-established. Petrogen continues to pursue and negotiate with several other operators in the Mississippi area pursuant to Company's focus on increasing lease hold interests in this high impact region.

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