Pilgrim Petroleum Corp. (PGPM)

Pilgrim Petroleum Corporation is a Texas based oil and gas exploration and development (E&D) company with domestic producing crude oil and natural gas properties. The company has positioned itself and its shareholders to take advantage of the supply needs in the energy sector by providing domestically produced resources. The Company’s management and operational team have extensive oil and gas industry expertise as well as capital market experience. Our combined strengths allow the company to run at maximum efficiency while exploiting the full potential of our properties to maximize production.

Pilgrim Petroleum Corporation Focus on maximum development of existing fields in core areas, Increase our probable and proven reserve estimates through acquisitions and development of new properties, utilize innovative, cost-effective technologies such as pressure maintainance to enhance production as well as use modern technologies such as 3-D seismic and aeromagnetic surveying to reveal untapped reservoirs. Our vision is to create an exploration-led and sustainable cash generative oil and gas business offering shareholders exposure to material capital growth potential. We create, add and realise value within a self funding business, using either balance sheet cash or operating cash flow to fund exploration. We focus on identifying assets that are capable of providing significant and sustainable growth, capturing as high an equity position as possible in frontier areas, using our strong technical and commercial expertise and working with our partners to take our assets from discovery to development safely.

Supporting our people People are our most important asset and helping them develop their skills and abilities ensures we continue to work towards our goals. We encourage them to realise their potential and provide them with a supportive workplace in which diversity and equality are respected and valued. The health and safety of our people is also vitally important to us. Throughout our global activities we ensure our people have a healthy, safe and secure workplace.

Protecting the environment The safety of the environment where we operate is also vitally important to us. Throughout our global activities before operating in any new area, we assess the potential impacts of our activities in order to avoid any impact where possible, and if not possible in order to identify ways to mitigate against these and design our plans accordingly.

Contributing to local communities Wherever we work, we aim to develop long-term partnerships with local communities and work with them where possible to develop sustainable economic, social and environmental initiatives. We encourage local people to contribute to, and benefit from, our projects and believe that by working together we can succeed together. The benefits from our operations can include: energy, infrastructure, employment and trade with local enterprises.

Pilgrim Petroleum Corporation Provide well management services to small producers. Pilgrim provides a variety of operational services on a menu-type fee basis. Services include Basic Accounting, Marketing, Land Administration, Regulatory Consulting and Reporting, Engineering, Environmental, Pumping and Drilling Supervision and Pressure Maintainance services. We implements these services through a vast network of sub-contractors and consultants, thereby minimizing the staffing requirements to maintain a large operation. All sub-contract costs are passed through to the producer on a cost-plus basis. Pilgrim's compounded growth rate and positioning affords the Company to capitalize on acquisitions in strategic areas of interest and therefore create more opportunities for participation of investors.

Pilgrim Petroleum Corporation plans to minimize the Company's overhead and capital expenditures by subcontracting the drilling, redrilling and workover of wells to independent drilling contractors and by outsourcing other services. The Company typically compensates its drilling subcontractors on a turnkey (fixed price), footage or day-rate basis depending on the Company's assessment of risk and cost considerations on each individual project. The Company continues to seek strategic alliances with service and equipment companies, technological companies, and industry partners to maximize every dollar invested and diversify our risk.

Assessment of Undiscovered Oil and Gas Resources of the Bend Arch-Fort Worth Basin Province of North-Central Texas and Southwestern Oklahoma, 2003

U.S. Department of the Interior
U.S. Geological Survey
Fact Sheet 2004–3022
March 2004

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Map showing major structural elements (black lines), oil (green dots) and gas (red dots) well production, location of Newark East Field, and boundary of USGS Bend Arch-Fort Worth Basin Province (gray line). Red lines show present-day limit of Barnett Shale (Mapel et al., 1979) and purple lines are eastern limit of Woodford Shale (Comer, 1991). Blue line approximates the boundary of the Barnett-Paleozoic Total Petroleum System. Source: Pollastro, R. and others.(2003) " Assessing Undiscovered Resources of the Barnett-Paleozoic Total Petroleum System, Bend Arch–Fort Worth Basin Province, Texas". Online adaptation of presentation at AAPG Southwest Section Meeting, Fort Worth, TX, March, 2003.

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Pilgrim has non producing properties in Archer, Wichita and Wilbarger Counties, Northwest Texas, most of which had been shut-in.

Currently, Pilgrim Petroleum is concentrating its efforts in acquiring more prospects around the area and providing Industry services to small and medium E&P companies.

Oil Resources Estimation

Our (early-stage) estimations to calculate the Potential Oil Reserves underlining our properties in the Bend Arch-Fort Worth Basin Province are based on volumetric calculations. It is worth mentioning that the thickness chosen is required to accurately count net effective reservoir quality (e.g. shale or sand) and it is also used to construct net pay isochore maps for volumetric reserve calculations.

Please refer to: Geologic Documentation by SCA to expand on thickness determination for volumetric calculations and the Bend Arch-Fort Worth Basin Province (045) study by the USGS to obtain further explanation on the characteristics of the Bend Arch-Fort Worth Basin Province and the thickness of oil pay in this area.

The Electra Rework Prospect is located in Wichita and Willbarger Counties, Texas on the northern plunge of the Bend Arch within the Bend-Arch-Fort Worth Basin geological province of North Texas. Pay zones in the target area range from as shallow as approximately +/-350 feet in total depth to +/-1850 ft or more in total depth.

Pilgrim’s operational plan calls for the rework and drilling several prospect properties starting with the shallowest formations located at 300 and 600 feet in total depth in order to increase daily production totals.  In addition, secondary and tertiary recovery methods would include the injection of heated and pressurized Carbon Dioxide and Nitrogen gases as well as chemically treated saltwater in order to increase fluid production rates.

Reworking and Drilling of the wells will utilize bid and budgeted rework assessments as well as 3rd party geophysical analysis and interpretation.  Pilgrim Petroleum will employ the services of professional petroleum consultants, engineers and geologists as required in connection with the Prospect, and all such services will be performed by professionals with which Pilgrim Petroleum has had favorable experience.

The City National Bank Discovery Well Prospect is located in Archer County, Texas on the northern plunge of the Bend Arch within the Bend-Arch-Fort Worth Basin geological province of North Texas. The Bend Arch is a prominent structural ridge that marks the western boundary of the Fort Worth Basin.

Pilgrim’s operational plan calls for the drilling of an exploratory well on the Prospect property to approximately 5000 feet in total depth in order to potentially access 2 geologic formations, specifically the Caddo and Ellenberger formations.  In addition, Secondary recovery methods could include the injection of heated and pressurized Carbon Dioxide and Nitrogen gases in order to increase fluid gravity and pressure.

Drilling location of the discovery well will be determined utilizing bid and budgeted geology assessments as well as 3rd party 3D seismic with interpretation.  Pilgrim Petroleum is not an operator and will employ the operator services, engineers and geologists as required.