Petro Resources Successfully Completes Piceance Basin Well

Petro Resources reports that the initial well drilled on its Whitewater Prospect has been open hole completed as a successful well in the Dakota formation. The Hamilton Ranch 3-33 well is located in the Piceance Basin in Delta County, Colorado. Drilling operations have commenced on the second prospect well, the Hamilton Ranch 4-32, located approximately one mile southwest of the Hamilton Ranch 3-33 well. In addition to the Hamilton Ranch 3-33 and 4-32 wells, four additional sites have been permitted. Petro Resources has also agreed to participate in its share of an additional 3,967 acres of leases adjacent to its 9,500 acre holding in the Whitewater Prospect. The company has an 18.75% interest in the Whitewater Prospect.

Petro Resources participated with Hall-Houston Exploration II, L.P. in three Gulf of Mexico discoveries out of five exploratory wells drilled. Two of the wells have been completed and are awaiting connections to pipe lines while the third well is currently being completed. After the current completion operations are concluded, the rig will move to the next exploratory location. Petro Resources expects to participate in two to three additional exploratory wells in the Gulf of Mexico prior to year end.

The Cinco Terry 901 and the Cinco Terry 1301 wells located in Crockett County, Texas have been completed and are awaiting pipeline connection. The Cinco Terry 901 is a single zone completion that will produce both oil and gas while the Cinco Terry 1301 is completed in two gas zones. The company has a 10% interest in this prospect and expects to participate in one additional well on this prospect prior to year end. The operator, Approach Resources, has indicated that it anticipates drilling approximately 20 wells on our 18,000 acre position during 2007.

We have been notified by Approach Resources, the operator of the Boomerang Prospect, that we will drill three pilot wells to test the New Albany Shale prior to year end. The Boomerang prospect encompasses approximately 72,000 acres located in five counties in southwestern Kentucky. The primary objective is the New Albany Shale and includes the application of specialized drilling and completion techniques. In addition to the potential in the New Albany Shale, there may be additional deeper potential in this area. The company has a 10% interest in the prospect.