Application for Primary Recovery Scheme Peace River Oil Sands Submitted to EUB: up to 8 Well Horizontal Drilling Program to Resume upon EUB Approval.

CALGARY, Alberta -- Source Petroleum Inc. (OTCBB:SOPO) is pleased to announce that one of its farm out partners, Dual Exploration Inc., has, as the operator, submitted an application for a primary recovery scheme within sections 15, 16, 17, 20, 21, and 29 of 83-19W5M.

Dual Exploration Inc. has submitted an application for up to eight single leg horizontal wells proposed to be drilled from four drilling pads. The horizontal sections in each well are expected to be 1200-1500m in length. These wells will be used to evaluate the productive potential of the property. Upon successful evaluation, a second application to the Energy and Utilities Board will follow in order to allow further development.

Primary production of heavy oil from through horizontal wells in the manner proposed in the Peace River Oil Sands area has seen significant development with numerous wells placed on production.

Horizontal wells that are currently producing from the Blue Sky formation as part of a primary recovery scheme in the area are the Baytex Energy Ltd. wells within 84-18W5 and the Penn West Petroleum Ltd. wells within 84-19W5. These producing wells are located approximately 10 km northeast of the property, and the Blackrock Seal wells are within 12 km north.

The Peace River Oil Sands District are believed to contain approximately 9 billion barrels of oil in place with current significant production of heavy oil from projects such as Blackrock Seal, Shell Caddote, Baytex and Penn West.

Source Petroleum Inc., with 50% participation interest, along with its joint venture partner are targeting operations in the same Blue Sky Gething formation with potential ooip reserves of up to 260 - 450 million barrels.

Further information will be given upon application approval from the EUB, which is expected in approximately 8-12 weeks.

For further information please refer to the Website of Source Petroleum at www.source-petroleum.com. Further information will follow as it becomes due.

Except for the historical and present factual information contained herein, the matters set forth in this release include statements of management's current expectations. Statements identified by words such as "expects," "projects," "plans," "believes," "estimates," "may" and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, include the statement that we believe there may be an estimate of 9 billion barrels oil in place at the Peace River Oil Sands District, that there is a potential ooip reserve of up to 260 - 450 million barrels on the our Peace River property are subject to risks and uncertainties that may cause actual results to differ materially, including the possibility that the historical data may be inaccurate or misinterpreted, the anticipated benefits from our operations cannot be fully realized, the possibility that commodity prices, costs or difficulties related to the conduct of its business will be greater or lesser than expected, and the impact of competition and other risk factors relating to our industry will be greater than expected, all as detailed from time to time in the company's reports filed with the SEC. The company disclaims any responsibility to update these forward-looking statements.