Grid Petroleum Unconventional Shale Developments- Kreyenhagen Trend, San Joaquin Basin California

DENVER, Dec. 9, 2011 /PRNewswire/ -- Grid Petroleum Corporation (OTC.BB: GRPR.OB – NEWS) ("The Company") announces material enhancements to its plans to develop the Unconventional Shale acreage it joint ventures in the San Joaquin Basin in California.

In a strategic move, the Company has mitigated it's exposure to the initial exploratory risk associated with the development of the Unconventional Shale acreage to its joint venture partners in exchange for a reduction of the Company's working interest in the overall Kreyenhagen Trend oil shale play.

Grid Petroleum will have contributed on its behalf, a cash consideration , of 1.1 million dollars towards developmental expenses during the next twelve months by its joint venture partners. These costs include all lease costs for the next twelve months, the costs associated with the developmental study and all the costs and expenses of drilling the first test well on the acreage.

The Company has reduced its working interest from 50% to 20%  with a net revenue interest reduction from 37.5 % to 14%

"We see this development plan for the acreage to be a very positive move for the Company," stated President James Powell. "Not having to cover these expenses before the first well is drilled allows the Company to reap the benefits of success in the acreage without having to expose any investment dollars."

The company is informed by its joint venture partners that the compilation of associated properties information stage is near completion and that the progress of the study remains on track. It is anticipated that the study will be completed and the first drill site will be selected within the first quarter of 2012.

The company previously announced the following estimated Oil In Place Potential of the Kreyenhagen Trend leases as determined by the company's geologists: "Initial estimates indicate that there exists 82,000,000 BOOIP. Eighty Two Million Barrels Oil Oil in Place."

The Company currently holds a 20% Working Interest in the 4,000 acres , Grid Petroleum Corp  joint venture partners hold the other  providing an estimated 16,400,000 BOOIP to Grid Petroleum's Interest.

For Further Information:

www.gridpetroleum.com 
[email protected]

Contact:
Parkside Communications Inc.
Phone: 1-877-798-4165
[email protected]
www.ParksideCommunications.com

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Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in the Company's periodic filings filed from time to time with US Securities and Exchange Commission at www.sec.gov.

This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). They may not be offered or sold in the United States (as defined in Regulation S under the Securities Act), except pursuant to an exemption from the registration requirements of the Securities Act.

Cautionary Note to U.S. Investors — The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms such as estimates of a mean of undiscovered natural gas and estimates of a mean of undiscovered oil that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K and other periodic reports filed by us from time to time with the SEC, available from us at www.sec.gov. You can also obtain this form from the SEC by calling 1-800-SEC-0330.