Pilgrim Petroleum Announces Record Income for Quarter and Increase of Potential Oil Reserves.

IRVING, Texas -- Pilgrim Petroleum Corporation (Pink Sheets:PGPM), an independent oil and gas company, announced today its plans of steadily working on increasing production in its current portfolio of leases on American Petroleum Corporation & General Energy Corp both subsidiaries and operators of Pilgrim.

Based on a 12,000-acre portfolio of proven undeveloped fields in the area of Archer and Wichita County, Texas, Pilgrim Petroleum estimates very high volumes of recoverable reserves. If the whole estimated subsurface is taken into consideration when calculating the potential of recoverable oil, the estimation reveals an approximate of 900 million barrels of recoverable oil.

(Total reserves based on 12,000 productive acres
         12,000 acres x 500 feet x 150 barrels per acre foot =
                900 million barrels of recoverable oil)

The net effects for the valuation of Pilgrim's stock with this potential recovery can be calculated as follows:

At US$60 per barrel for proven reserves and a portfolio that generates 900 million barrels of oil, Pilgrim Petroleum can be valued conservatively at 900 million barrels x 20% net revenue interest to Pilgrim Petroleum x US$60 per barrel = $10.08 billion less $100 million net development cost = $US10.07 billion in potential assets if fully developed. Pilgrim common stock could be worth approximately: $US10.07 billion divided by 322,720,011 common shares = $33.15 per share.

Pilgrim Petroleum Corporation CEO Rafael Pinedo said: "With these projections in hand, our objectives as a firm are steadily being accomplished as well as our serious commitment to our nation's energy supply."

Safe Harbor" Statement under the Private Securities Litigation Reform Act: Statements in this news release may contain forward-looking information within the meaning of Section 27a of the U.S. Securities Act of 1993 and Section 21E of the Securities and Exchange Act of 1934, and is subject to the safe harbor created by those sections. All statements, other than statements of historical fact, are forward-looking statements that involve various risks and uncertainties, which may, individually or mutually, impact the matters described herein. There can be no assurance that such statements will prove to be accurate, and the actual results and future events could differ materially from those anticipated in such statements. The company assumes no obligation to update the information contained in this release. Readers should not place undue reliance on any forward-looking statements contained herein.