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Petrogen Prepares New Well Drilling Location at Tiller Ranch

- Texas Gulf Coast Natural Gas Development Project Underway -

HOUSTON, Oct 18, 2005 /PRNewswire-FirstCall via COMTEX/ -- Petrogen Corp. (OTC Bulletin Board: PTGC), announced today that it has commenced location preparations to drill its first well, the Tiller Ranch #1, on the Company's newly-acquired Texas Gulf Coast property, the Tiller Ranch Lease (the "Lease"). The Lease is located within Tom Graham Field, Jim Wells County, Texas, which has produced over thirteen billion cubic feet of natural gas (13 Bcfg) from twenty-five distinct sands as well as six million eight hundred thousand barrels of oil (6.8 Mmbo) from six sands. The Tiller Ranch #1 will be drilled to test the multiple Frio and Vicksburg age reservoir sands. Extensive subsurface control, provided by approximately twenty-five wells located on or adjacent to the Lease, indicate that potentially up to 18 Bcfe of natural gas reserves could be recovered through the development of up to six new wells.

Petrogen's Chairman and CEO, Sacha H. Spindler stated, "Petrogen's operational focus is to attempt to fully develop Tiller Ranch over the course of the coming two fiscal quarters. With as many as six possible new well drilling locations to spud at Tiller Ranch, we have the potential to increase the Company's reserve base and oncoming revenue stream significantly."

The Lease consists of potential natural gas exploitation opportunities trapped along a north-south striking, underdeveloped, low relief anticline. The majority of wells on the Lease were drilled during the 1940's and 1950's when local natural gas prices were in the $0.02 -- $0.10 per Mcf range. These extremely low gas prices resulted in limited development of the natural gas reserves on the Lease, providing for substantial infill and step out drilling potential. Wells in the area have average production histories of approximately eight to ten years with cumulative production of approximately 3.0 Bcfg per well. Extensive natural gas infrastructure exists within the area providing for immediate transportation and sales of any potential upcoming natural gas production. Current gas prices for potential production from the Tiller Ranch area are approximately in the $11.00 -- $11.50 per Mcf range and will be sold into the Enterprise Products Partners gas pipeline system in South Texas.

Mr. Spindler further stated, "Tiller Ranch is another example of the high caliber opportunities Petrogen strives to develop in the Texas Gulf Coast. It possesses significant geologic data and well control along proven hydrocarbon- producing trends that enables the Company to greatly reduce its geologic risk while increasing its degree of confidence that the 18 billion cubic feet of indicated potential reserves can be readily exploited through our current drilling initiative."

About The Texas Gulf Coast

Texas and the Texas Gulf Coast represent one of the premier natural gas exploration and development regions in the world, accounting for 32% of all natural gas production and 27% of proved natural gas reserves in the United States. Over the past few years, several large discoveries by Shell, BP and Chevron Texaco have contributed to the growing prominence of the Gulf Coast region as a hotbed for the expansion of domestic natural gas developments.

About Petrogen

Petrogen Corp. is a Houston, Texas based upstream energy company specializing in the development of natural gas properties in the Texas Gulf Coast region with known hydrocarbon reserves. For further information, please visit the Company's website at http://www.petrogencorp.com.

THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING ADDITIONAL PROJECT INTERESTS, THE COMPANY'S ANALYSIS OF OPPORTUNITIES IN THE ACQUISITION AND DEVELOPMENT OF VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.

Company Contact
Louis J. Fruchier
V.P. Corporate Development & Communications
Petrogen Corp.
888-875-1155
[e-mail]


SOURCE Petrogen Corp.

Louis J. Fruchier, V.P. Corporate Development & Communications of Petrogen Corp.,
1-888-875-1155, [e-mail]

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