Ridgeway Wins Approvals for New Mexico Development

Ridgeway Petroleum Corp. has received all of the approvals for the formation of the Cottonwood Canyon Unit Agreement in Catron County, New Mexico.

The Cottonwood Canyon Unit area is located in Catron County, New Mexico and covers an area of 89,734 acres. The Unit Agreement calls for the orderly development of the Unit area over a 5 year period. Ridgeway Arizona Oil Corp has been designated as the Unit Operator and is the only working interest participant in the Unit. The effective date for the Unit formation was January 15, 2007.

The formation of the Cottonwood Canyon Unit is an important step towardsdeveloping the New Mexico portion of the St Johns Carbon Dioxide Field and allows Ridgeway to systematically appraise and develop the field over a five-year period.

The company will begin to mobilize a third drilling rig within the next week to drill the first appraisal well within the Cottonwood Canyon Unit area. The well is designed as an appraisal well to test the Amos Wash interval, found gas bearing in several wells previously drilled on the New Mexico side of the St Johns Carbon Dioxide field.

Ridgeway also said that the 11-29-30 well, the first well in its 12-well winter drilling program, has been cased as a future Amos Wash and Ft Apache gas well after excellent pressures and CO2 flows were encountered in the primary target from 1740' to a total depth of 1907'. Preparations are now underway to flow test the well. The rig has been moved to the second location and drilling operations have commenced. This well is located approximately 1 mile west of the State 11-18-29 CO2/Helium gas well that blew out while drilling in 2004 and is designed to test the Amos Wash and Ft Apache zones found productive in that well.

Ridgeway Petroleum is a development-stage, enhanced oil recovery (EOR), company that controls approximately 200,000 acres of land in Arizona and New Mexico where the company has identified a significant resource of helium and carbon dioxide gases. Development of the project could lead the company to potentially become one of North America's largest suppliers of these gases to Industry. The company's area of focus for its CO2 is the Permian Basin, where significant potential exists for enhanced oil recovery from mature, depleted oil fields.