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Petrogen Update - EH#3A Well Progress

- Compression Initiative Flows Successful, Natural Gas Rate Increases -

HOUSTON, Oct 20, 2005 /PRNewswire-FirstCall via COMTEX/ -- Petrogen Corp. ( PTGC ) announced today initial natural gas flow rate results from the Company's Emily Hawes Field #3A well (EH#3A) compression initiative. Since the implementation of the initial rate from the first stage of compression installed on the EH#3A, current natural gas production rates from the well have already increased by more than 50% from rates observed prior to Hurricane Rita.

On October 7th, 2005, crews were mobilized to Emily Hawes Field to install the Company's two-stage compression system to help increase and optimize daily natural gas flow rates from the EH#3A. Due to high line pressures on the Northern Natural Gas/Matagorda Offshore Pipeline System sales pipeline (NNG/MOPS), optimum daily natural gas production rates from the EH#3A were being suppressed. The addition of the first stage of compression on the EH#3A will mitigate any further suppression from the NNG/MOPS line pressures.

Currently, natural gas production rates from the EH#3A utilizing initial compression speeds, are averaging between 380 Mcfgd to 500 Mcfgd. As the well continues to clean up, operations personnel indicate compression speeds will be increased within the first stage of compression to further improve gas sales.

Petrogen's Chairman and CEO, Sacha H. Spindler stated, "We are very pleased with the initial flow rate results from the Emily Hawes #3A since the installation of our two-stage compression system. As the well continues to clean up, we have several options that remain available to us that can continue to further improve gas sales from the well. These include increased speeds within the first stage of compression, as well as the implementation of the second stage of available compression that will further improve overall daily natural gas production flow rates."

On November 23, 2004, Petrogen announced that it successfully tested natural gas from the EH#3A well from the Basal Miocene M1 sand with an absolute open flow of 1,998 mcfgd; 978 mcfgd was tested on a 14/64" choke with flowing tubing pressure of 1,395 psi and a final shut-in pressure of 1,950 psi. On May 7, 2005, crews were mobilized to Emily Hawes Field and immediately began an extended production test of the EH#3A well. On August 3rd, 2005 Petrogen announced that it had commenced natural gas sales from the EH#3A well.

The Emily Hawes Field property is located approximately 90 miles southwest of Houston, Texas within the prolific oil and gas producing Miocene-Frio trend of the onshore and offshore Texas Gulf Coast. Near term plans include the expansion of operations through the development of a number of infill and step-out drilling locations to that of the EH#3A well targeted at the Basal Miocene Sands within the Emily Hawes Field.

About Matagorda Island

Matagorda Island is one of seven barrier islands located in the Gulf of Mexico, Texas Gulf Coast. Today, Texas and the Texas Gulf Coast represent one of the premier oil and gas exploration 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. Matagorda Island is approximately 34 miles long by 4 miles wide and is situated along the prolific, natural gas producing Miocene/Frio trend.

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.

CONTACTS:

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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