Pitkin Spuds New Well, Inks SC in Philippines, Completes Peruvian Seismic

Pitkin Petroleum has announced the following update on the company's activities in Vietnam, the Philippines and Peru.


Pitkin, via its wholly-owned subsidiary, Vietnam American Exploration Company, LLC ("VAMEX"), started drilling in Block 07/03 on 7 May with the rig Hakuryu V. The first well, 07-CRD-1X, is evaluating the Ca Rong Do Prospect (originally referred to as Red Emperor). Water depth at the well location is 319 meters. Block 07/03 covers an area of 4,915 square kilometers and lies between the Nam Con Son Basin hydrocarbon fields to the north and the East Natuna Basin discoveries to the south. A second well on the block is expected to be drilled in the last quarter of 2009. Pitkin has a participating interest of 40% in the block with the operator, Premier Oil (30%), PearlOil (15%) and Pan Pacific Petroleum (15%) as its partners.


Pitkin's Cuyo Block has been formally signed as Philippines Service Contract No. 71. The block lies offshore Northeast Palawan in shallow water. It is undrilled but studies suggest that a potentially thick sedimentary sequence exists in the block and a number of large structural leads have been identified. Reprocessing of existing 2D seismic is planned for 2009. Pitkin has a participating interest of 85% in the block with South China Resources Inc (15%) as its partner. SC 71 is Pitkin's third venture in the Philippines, where the Company’s portfolio comprises a total area of about 20,000 square kilometers, both onshore and offshore.


The Peru Block Z-38 2D marine seismic acquisition survey was completed in March 2009, with 2,393 kilometers of data recorded. Block Z-38, which covers 4,875 square kilometers, lies 15 kilometers from giant oilfields to the south that have produced over 1 billion barrels of oil and 25 kilometers west of BPZ's Corvina Field. A number of substantial prospects and leads have already been mapped from existing seismic, most of them exhibiting direct hydrocarbon indicators. Following PeruPetro and Government approval, equity interests of the participants in Block Z-38 will be: Pitkin (via VAMEX) 40%; Karoon Gas Australia Ltd 60%.