PetroHunter Modifies Drilling Plans for Buckskin Mesa Project

PetroHunter Energy Corporation has modified its drilling and development plans for its 20,000 net mineral acre Buckskin Mesa project in the Piceance Basin of Colorado. PetroHunter also announced that it encountered potentially significant oil shows in its Shenandoah #1 well drilled on one of the Company's Exploration Permits in Australia.

Colorado -- Buckskin Mesa Operations

As part of the settlement of the "Daniels Litigation" (described below), PetroHunter and Daniels agreed to extend the date for commencing the first well in Buckskin Mesa to July 31, 2009, and to increase the total minimum number of obligation wells to 20, through December 2010. PetroHunter and Falcon Oil & Gas Ltd. intend to close the first phase of their agreement (announced August 25, 2008) in the next few weeks, under which PetroHunter will begin testing and completion operations on one or more of the five wells, which PetroHunter previously drilled but did not complete in Buckskin Mesa.

PetroHunter intends to diligently move forward on the Buckskin Mesa gas gathering system. Under PetroHunter's agreement with CCES Piceance Partners I, LLC ("Clear Creek"), PetroHunter and Clear Creek have begun ordering all necessary materials for construction of the Buckskin Mesa gathering facilities.
Australia -- Potentially Significant Log and Oil Shows in the Beetaloo Basin Project

As announced in 2007, PetroHunter drilled its Shenandoah #1 well on one of its Exploration Permits in the Northern Territory, Australia. In 2008, the Company engaged NuTech Energy Alliance to further analyze the logs from the Well, and to run a shale model, using recent North American oil productive fractured shale analogs. The preliminary results of the NuTech analysis for shales at approximately 3,000-foot depth indicate an estimated initial production rate of several hundred barrels a day (assuming a horizontal well), and a 3-year recovery of 70,000 barrels per well.