Pilgrim Petroleum Announces Year-End Letter to Shareholders.

IRVING, Texas -- Pilgrim Petroleum (PINK SHEETS: PGPM) (FWB: PHV) issued a letter to shareholders today, providing an update on the company's progress. The letter reads as follows:

To Our Valued Shareholders:

Pilgrim Petroleum's performance in 2006 provided strong confirmation of our company's ability to grow, maintain and increase financial and operational performance. All of us at Pilgrim Petroleum recognize that raising shareholder value is our collective challenge. Good operating results, combined with no debt in our balance sheet, have contributed to aggressively focus on the growth of our portfolio.

Accomplishments

* Workover and completion services on 60 wells on Pilgrim Petroleum's most important leases (Hooks, Lockridge, Climax, Morgan and White Meldon Leases) steadily increased our production levels.

* Pilgrim Petroleum completed its Reserve Evaluation program (Phase one) with the engineering consulting firm Gustavson Associates, a very important step to comply with stock exchanges filings requirements and auditing.

* Results of prospective resources are: Low-3.98 BCF, 996 MBbl; Best-7.32 BCF, 1,832 MBbl; and High-10.70 BCF, 2,676 MBbl.

* Gustavson Associates express opinion on Pilgrim's potential resources, which do not include recent additional acreage acquired by the company (Phase two). The report is available at our website: http://www.bpetroleum.com. We expect these recent additional properties be evaluated and included in our Geological report in 2007.

* According to Gustavson Associates, Pilgrim's Estimated Future Net revenue (before income taxes) is $102,370,000 and a Net Present Value at 10% discount rate of $52,050,000.

* Strategic Alliance with General Energy Corporation, headquartered in Montreal Canada, provider of additional acreage in the Central Gaspe Peninsula.

* General Energy Corporation sets strategic alliance with Huizhou Engineering Co. Ltd an SEWAN Limited, alliance named as "GSH Energy," to jointly develop and manufacture land and offshore workover equipment and portable trailer drilling rigs.

* Being mindful of the need to offset dilution, in early December 2006 the company announced a plan to repurchase up to $1.5 million of the company's common stock over a period of up to two years.

* Renewal and signing engagement agreement with American Capital Investments, LLC (http://www.americancapitalipo.com), which will provide financial and strategic services to increase visibility to institutional investors.

* Pilgrim`s common stock commenced trading on December 20th on the Frankfurt Stock Exchange under the ticker symbol "PHV," WKN: "A0ETGE," ISIN: US72147P1075.

Pilgrim Petroleum management are focused and determined to develop more proven reserves.

FINANCIAL STATUS

Pilgrim Petroleum keeps maintaining no long-term debt, minimal liabilities and a substantial increase of net revenues.

Our financial strategy emphasizes continued strengthening of our much-improved balance sheet. At year-end 2006, we have achieved positive profit margins and outstanding performance ratios. Elevated by a high-performance culture, we continue to build an exciting company and a compelling future. By adhering to a disciplined financial strategy, we were able to improve our cost structure, strengthen our portfolio of assets and enhance the company's overall financial strength.

The above observations have provided Pilgrim Petroleum with the confidence, drive and knowledge to implement the following strategies for our leases development.

What is on the short-mid term agenda?

* Continue to implement Pilgrim's development and reactivation program on the most profitable leases and potential debentures

* Become a fully Reporting Company

* Pilgrim Petroleum earnings and revenue streams are expected to further increase from reactivation of inactive wells and will be focused in 2007 to increase production with different recovery process along with new drilling activities along with our Field Service Department and Basic Energy Services (NYSE:BAS)

* Search of partnerships to venture on developing Pilgrim's exploration program and drilling/exploration campaign estimated to begin first quarter of 2007

What is Pilgrim's long-term goal?

* Commercial Production from our current portfolio

* Re-invest our excess cash flow into new exploration potential reservoirs in deeper horizons or in other similar properties

* Venturing with peer companies to acquire working interest in attractive new prospects and proven reserves properties

* Long-term profitability and sustainability

CORPORATE COMMUNICATIONS TARGETS:

Given the upcoming changes and in order to ensure effective time management on the new developments being implemented by Pilgrim Petroleum Corporation, we provide our shareholders and potential investors with a quarterly President's Report.

For IR information email or call at:

[e-mail] or telephone: [phone] Fax: [phone].

Our management remains focused on developing strong communications by effectively executing its corporate goals:

* Investor Relations program with American Capital Investment, LLC - ongoing

* Improving the Pilgrim Petroleum website to ensure that the most up to date and relevant information is being presented effectively.

* Wallst.net, which receives several million visitors a month, interviewed Pilgrim's CEO, Raphael Pinedo. It is available at www.wallst.net, and Pilgrim Petroleum's website.

* Our Investment Strategy Plan will continue to focus to further expose Pilgrim Petroleum in the US, Canadian and European markets.

Please visit www.pinksheets.com to view all of Pilgrim's publicly filed documents.

On behalf of the board of directors and management team at Pilgrim Petroleum Corporation, we would like to thank all of our current and future shareholders for their continued support and interest. Pilgrim Petroleum management is very excited about the growth achieved this year. Pilgrim Petroleum is focused on increasing production of their existing oil supply to commercial levels and further growth through acquisition of domestic and international properties opportunities!

Raphael Pinedo
President & CEO
Pilgrim Petroleum Corporation

About Pilgrim Petroleum.

Headquartered in Irving, Texas, Pilgrim Petroleum Corporation is a publicly traded company (PINK SHEETS: PGPM) (FWB: PHV). Pilgrim Petroleum Corporation is an independent oil and gas company based in Irving, Texas. 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.