Journey Energy Inc. announced that it has entered into a definitive agreement to develop its East Duvernay shale oil resource prospect with a strategic joint venture partner, Kiwetinohk Resources Corp. ("Kiwetinohk"). In addition, through a series of transactions, Journey, and Kiwetinohk, have increased the amount of contiguous lands in the East Duvernay shale oil resource prospect from approximately 100 sections to approximately 140 sections.

Journey has entered into a joint venture arrangement with a strategic partner, Kiwetinohk, an Alberta based private oil and gas company. Kiwetinohk is led by Pat Carlson. Mr. Carlson, and a number of his team members have been instrumental in the development of large scale resource plays in the past.

The team is highly regarded for their expertise and their ability to execute projects of this nature. The Agreement contemplates both a two well "Commitment" phase followed by a five well "Option" phase. Although each location has not been finalized, both Kiwetinohk and Journey will work together in formulating the most effective drilling program to delineate the most prospective sections, mitigate land expiries and test potential development concepts.

Highlights of each phase are as for the two well Commitment phase, Kiwetinohk will pay 100% of the capital costs, and have 100% working interest, before payout of 58.33% of its costs to drill, complete, equip and tie in. Journey will be entitled to a 3.75% gross over-riding royalty on the production from the wells prior to payout. After payout, and conversion of the royalty, Kiwetinohk will have a 70.83% working interest in the commitment wellbores while Journey will have a 29.17% working interest.

After earning, the working interests in the Commitment blocks, outside of the two commitment wells, will be Kiwetinohk 62.5% and Journey 37.5%. Kiwetinohk will be the operator of all of the lands earned. For the five well Option phase, Kiwetinohk will pay 100% of the capital costs, and have 100% working interest, before payout of 33.33% of its costs to drill, complete, equip and tie in.

Journey will receive no royalty prior to payout. After payout, Kiwetinohk will have 70.83% working interest in the option wellbores while Journey will have a 29.17% working interest. After earning, the final working interests in the applicable earned Option block, outside of the five option wells, will be Kiwetinohk 62.5% and Journey 37.5%.

Kiwetinohk will be the operator of all of the lands earned.