PGPM Pilgrim Petroleum Corporation (CE)

Pilgrim Petroleum Corporation (Pink Sheets:PGPM) announced today an explanation of the previous May 1st Press Release. After thorough research, Potential Oil Resources calculations without taking some factors like porosity, etc., into account can produce high estimate reserves due to inconsistencies in the volumetric calculations. Further definition between the methods used requires determining factors with inherent uncertainties by themselves and even more when they are combined. As commented SCA Geologic (2003), "over the past 25 years significant errors haven been present in reserve calculations as a result of using the wrong thickness value to determine the reservoir quality sand or to prepare net pay maps for volumetric calculations. Errors of 20 to 30 percent are not uncommon, but on occasion errors of up to 700 percent have been documented." Under this premise Pilgrim Petroleum decided to obtain a 3rd party opinion as a part of the pre-valuation stage in order to make wise capital outlays. Before anything, the company needs measures with less uncertain methodology. Gustavson preliminary report provides a reviewed, more thorough and conservative identification of the company's current assets value and resource estimates. This report did not cover our latest acquisition of production and acreage from last week or other acquisitions to be closed in a week. Neither report will include any marginal existing production or take into consideration a significant amount of processing equipment already in place. After all the complete report from Gustavson will be done in weeks, we are confident that this final number of Potential Resources will be significantly higher. Rafael Pinedo, CEO of Pilgrim Petroleum Corporation, commented, "Lessons Learned. As we grow, we exponentially encounter challenges that we need to offset through accurate operational management. Our commitment to the company and our shareholders is our driving force, we are very confident on the final results." About Pilgrim Petroleum Corporation Headquartered in Irving, Texas, Pilgrim Petroleum Corporation is an independent oil and gas company. The company is acquiring oil and gas leases, producing properties, mineral rights, and surface interests primary on marginal fields. Once acquired, the company intends to redevelop each property to maximize the income from each property by refurbishing and improving the existing production. Forward-Looking Statements: The statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," and "seeking" and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements. 2006 Pilgrim Petroleum Corporation. The information herein is subject to change without notice. Pilgrim Petroleum Corporation shall not be liable for technical or editorial errors or omissions contained herein.