BRIDGEWATER, N.J., July 20 /PRNewswire-FirstCall/ -- PrimeGen Energy Corp. (Pink Sheets: PGNE) ("PrimeGen" or the "Company") wishes to advise that as part of the recently announced participation agreement regarding the Company's oil and gas project in Timan-Pechora, Russia, the operator has notified PrimeGen that drilling of a second well commenced on July 10, 2009.

The second well has been titled as the "Kochmesskoye #2" and anticipated to reach a target depth by Wednesday, July 22, 2009. As part of the accelerated drilling program a third well is scheduled for immediate drilling shortly after the completion of the second well. The first well of the project was drilled and completed in the second quarter of 2009 and resulted in setting a new production record for the field of 1,200 barrels of oil per day. PrimeGen expects that an additional 5-8 wells will be drilled during the third quarter of 2009.

The Timan-Pechora Project area currently consists of 24 existing production oil wells with close to one billion barrels and 132 BCF of proven reserves. A discovery well tested 5,589 BOPD from zone at 3,958-3,974 meters. Timan-Pechora region is 17 kilometers from Ukhta, a major town in the Republic of Komi. The oil plays are situated approximately 1,200 km from Moscow. Its surrounding areas have well established infrastructure, allowing all year access for field operations. Power lines and a major highway pass through the territory. There is also a branch of the Transneft pipeline between Ukhta and Moscow that passes directly over the project. Additional transportation routes include a railway system, with the nearest terminal located close to Ukhta.

The area is a well documented and prolific region benefitting from the presence of established companies such as TNK-BP and Komineftegaz. The participating property has over 24 wells currently in production, from which PrimeGen's interest will result in immediate cash flow for the Company.

Company President Robert Charlton comments, "We are very pleased to see the positive results of these wells and feel we are well down the road to achieving our production targets on this field. PrimeGen's mandate has been to aggressively pursue reserves, production and cash flow growth through strategic investment in production, development and exploration assets with a primary focus on opportunities in Russia. We have successfully built a platform for growth with our Russian assets."

In addition, the Company would like to clarify that on July 14, 2009 it had voluntarily filed a Form 15 with the SEC to delist its shares from the OTC Bulletin Board. PrimeGen subsequently is transferring its disclosure and quotation venue from the OTC Bulletin Board to the OTC Pink Markets. The effect of this filing is to suspend PrimeGen's reporting obligations under the Securities Exchange Act of 1934 and to terminate the registration of its common stock in order to allow the Company's disclosures to be posted on the Pinksheets platform.

This disclosure and quotation venue move will save the Company a substantial amount of time and money on a quarterly and annual basis, while still providing its shareholders an active marketplace for publicly trading PrimeGen shares. The reporting and compliance burdens currently imposed by the SEC on smaller and mid-sized companies (which burdens are similar to those mandated for large, exchange-listed public corporations) have become almost intolerable for such smaller and mid-sized companies. The costs are enormous in both time and money. Additionally, companies are forced to focus on complying with these rigid over-reporting rules, rather than allowing them to focus on being productive for their shareholders and employees. It appears that the new administration in Washington may be inclined toward making this reporting/compliance situation even more stringent and burdensome. In the first 15 weeks of 2009 alone, over 500 public companies have filed a Form 15, apparently due to lack of compliance and the economics and stresses associated with these overly burdensome filing requirements.

"In taking the voluntary action to transfer its disclosure platform, PrimeGen has demonstrated its commitment to its current and future shareholders to control costs. PrimeGen is continuing to expand its business and believes its primary focus should be concentrated on its productive business objectives," stated Robert Charlton, CEO of PrimeGen Energy Corp.

About PrimeGen Energy Corporation

PrimeGen Energy Corp. is an oil and gas exploration Company whose primary focus is exploring and developing high potential unconventional resource plays. The Company's strategy and development assets are focused on a prolific and historic oil and natural gas resource play in Krasnoarmeiskome District, Saratovskoi Oblast in Russia. The Company is headquartered in Bridgewater, NJ and has offices in Moscow, Russia. PrimeGen Energy plans to use its comparative advantages in certain geographic regions to expand rapidly through strategic acquisitions of small oil and gas producing entities and production assets including wells, properties, operating equipment, and pipelines.

Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the development of an early stage company in the alternative energy industry, its products, and the entry into new markets for such products. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's current and periodic reports filed from time to time with the Securities and Exchange Commission.

SOURCE PrimeGen Energy Corp.