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Primary Petroleum Completes Phase I Exploration Program on its Southern Alberta Basin Prospect in NW Montana

CALGARY, ALBERTA -- (Marketwire) -- 01/04/13 -- Primary Petroleum Corporation (TSX VENTURE:PIE)(OTCQX:PETEF) ("Primary" or the "Company") wishes to advise that the $41 million Phase I Exploration Program ("the Program") has been completed. The Program consisted of 95 sq. miles of proprietary 3D Seismic; nine vertical wells of which seven were to acquire stratigraphic information and identify prospective reservoirs and three horizontal wells. Existing 2D and newly acquired 3D seismic have been integrated with the new drilling data which will assist in determining where future exploration efforts should be concentrated. The seismic and drilling coverage completed to date evaluates approximately 20% of the 384,000 gross acres (600 sections) that Primary and its JV Partner have exposure on, delivering approximately 328,000 net acres (512 sections) in the Southern Alberta Basin Fairway in NW Montana.

Horizontal Completion Program: Three horizontal wells have been completed and tested in specific reservoir intervals that yielded hydrocarbon shows during pilot program drilling operations. All three reservoir intervals are believed to be normally pressured and sourced from the Bakken System. All wells were completed by the plug-and-perf method utilizing fresh water as the base fluid. Nitrogen lift was initially employed on all wells to facilitate load-water recovery, with production logs and tracer surveys indicating that all frack stages were contributing to initial production. Specifics on each well are as follows:

Well #1: Nisku Formation (Upper Devonian). 9 stages across approx. 3,000' of horizontal section were successfully stimulated, with a total of approx. 13,000 bbls of fluid and 745,000 pounds of sand pumped. At 55% load recovery, production rates ranged 50-200 bfpd with only traces of oil. This well has been shut in pending further assessment of reservoir properties.

Well #2: Upper Potlatch Carbonate Big Valley Zone (Bakken System). 9 stages across approx. 2,700' of horizontal section were successfully stimulated, with a total of approx. 14,000 bbls of fluid and 835,000 pounds of sand pumped. At 27% load recovery, production rates ranged 60-100 bfpd with traces to 10% oil cut. This well has been shut in pending further assessment of reservoir properties.

Well #3: Basal Lodgepole Formation (Bakken System). 17 stages across approx. 4,000' of horizontal section were successfully stimulated, with a total of approx. 30,000 bbls of fluid and 1.65 million pounds of sand pumped. Results from swabbing operations indicated sufficient deliverability for the well to be placed on rod pump. Production optimization is ongoing to mitigate gas interference and improve pump efficiency

Regional mapping of the associated reservoir facies in the Bakken System will be integrated with geophysical interpretations of 3D seismic to further extrapolate the extent of the reservoirs over our lease holding.

2013 Phase II Exploration Program:... based on the data collected and evaluated to-date, we anticipate that the Phase II Exploration Program will focus in areas which are in closer proximity to source rocks and possible over pressure, which should increase the potential for better reservoir. Step-out drilling locations have been identified for both the Madison and lower Lodgepole formations in Phase I. The Phase II Program would continue to evaluate the best drilling practices to produce these potential resources.

The 60-day option period for our JV Partner to enter into Phase II of the Program has been deemed to have commenced. The Phase II program stipulates that our JV Partner has the option to spend a further US$41 million on seismic, vertical and horizontal exploration drilling to earn an additional 17.5% W.I. in the project.

About Primary Petroleum Corporation - Primary is a junior oil and gas company engaged in exploration and development activities in NW Montana and currently holds substantial land positions in both an unconventional and conventional resource oil play. The Company's mandate is to continue to acquire strategic opportunities in the Sedimentary Basins of the Western United States and Canada and seek out qualified industry partners to assist in the exploitation and development. To learn more about us, please visit our website at:

FORWARD LOOKING STATEMENTS DISCLAIMER: Certain statements in this document may contain "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking statements or information include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Primary Petroleum Corporation
Mike Marrandino
President & CEO
(403) 262-3132
(403) 262-3175 (FAX)

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