PanTerra Completes 2006 Drilling Under Budget

PanTerra Resource Corp.

PanTerra Resource Corp. reported that it has completed its 2006 drilling program and as a result of excellent gas indications, has cased a total of 39 wells which came in 20% under budget.

The Company has contracted an independent third party to value its land holdings consisting of 1.1 million acres (550,000 net) in Saskatchewan. The Company is also awaiting the results of its core analyses, which will determine the start of its completion program targeted to begin early in 2007. The drilling and casing of these 39 wells contributed to the Company's ability to meet and exceed its expenditure requirements for all three of its Exploration Permits.

2006 Overview:

Shell Lake:

In February 2006, PanTerra drilled and cased 2 wells in this area. Cased-hole logs were run on the wells in October and are presently being analyzed. Further work will be done on these wells in the New Year now that the drilling programs at Moose Jaw, Foam Lake and WhiteHill Lakes have been completed.

Foam Lake:

The Company drilled and cased 16 wells. Nine cores were cut and sent to a specialty lab in the U.S.A. for analyses, the results of which are expected before year end. Preliminary gas analysis from the Foam Lake cores indicate high methane (in excess of 96%) contents. The cased-hole logging program has begun and should be completed by mid-December. PanTerra will begin its completion program at Foam Lake in the New Year.

Moose Jaw:

PanTerra's Moose Jaw drilling program was completed by mid-November. All 16 wells showed excellent gas indications and were cased. Three wells were extensively cored with the samples sent to a lab in the U.S.A. for analyses. The cased-hole logging program will be completed by the middle of December. The completion program for Moose Jaw is expected to commence early in the New Year, once the results of the core and other analyses have been evaluated.

WhiteHill Lakes:

The Company as 'operator' drilled and cased five wells and was 'rig-released' by November 30th. One well was extensively cored, and the cores sent to the U.S.A. for analyses. Mooncor Energy Inc. paid 100% of the initial costs of the five well program and will pay 100% of the costs of the core analyses and completion costs to earn a 50% (25% net to PAN) interest in the property. Completion of these wells is expected to commence early in 2007.

PanTerra Resource Corp. is an Alberta-based resource company focused on the exploration and development of unconventional shallow and shale gas. The Company holds three permits and one license for a total of 1.1-million acres (550,000 net) on four properties in Saskatchewan.