President Petroleum Halts Drilling at La. Well

President announced an update on its drilling operations in Louisiana, USA and South Australia.

Kafoury 3 Well, East Lake Verret Field ("ELV"), Louisiana

The Kafoury 3 well has reached a measured depth of 12,556 feet just above the key deeper targets for the well. This is the first well drilled into this fault block at ELV and has encountered greater pressures and complexity than anticipated. A number of actions have been taken to ensure full control over the well with extra casing and increasing mud weights. Drilling is currently halted to install a drilling liner. As a result, the well is taking longer than anticipated, with a corresponding increase in costs.

Structurally, the well is in a good position relative to the deeper sands, and drilling to target will resume once the liner is installed. Further announcements will be made in due course.

East White Lake Field ("EWL"), Louisiana

Peak Energy LLC ("Peak"), the operator of EWL, is still waiting on the rig to drill the two proven undeveloped prospects in the field. Rig availability is tight at present but Peak has been informed that it is next in line for the rig.

PEL 82, South Australia

Construction of the well-site and drilling pad commenced in mid-December and is currently 50% completed. Drilling of water bores has been completed and the work on support services and drilling preparation is progressing to plan. The Company is monitoring the extremely wet weather currently being experienced in Australia as this represents the greatest risk to the projected February 2011 spud date.