TMX group

Passport Energy Ltd. Announces Commencement of Trading on TSX Venture Exchange and Provides Operations Update

Calgary, Alberta CANADA, June 01, 2012 /FSC/ - Passport Energy Ltd. (PPO - TSX Venture, PPO - CNSX),("Passport" or the "Company") announces that trading of its shares has commenced on the TSX Venture Exchange under the symbol "PPO". The shares also continue to trade on the CNSX under the same symbol.

The Company also wishes to provide an update on its Hardy Area operations in SE Saskatchewan.

On the Hardy North Property, Passport's first horizontal Bakken oil well, 1A4-16-4B4-9-4-21W2M (the "4-16" well), came on production in early September, 2011 at 164 barrels of 38.5 API oil per day (bopd).  The well is producing at above average rates and has cumulative production of over 19,000 boe.  With the drilling and completion of the 4-16 well, Passport has earned a 25% working interest in the well and 2 1/4 sections of land in Hardy North.

The second horizontal Bakken oil well in Hardy North, 3D14-17-3A3-17-4-21W2M (the "14-17" well), has been drilled, completed and placed on production.  The company expects to announce production results in the third quarter following an initial clean up phase and optimization period.  With the drilling and completion of the 14-17 well, Passport has earned a15% working interest in the well and between 7.5% and 15% working interest in 3.5 additional sections of land in Hardy North.  With these 2 wells Passport has completed the earning terms on the joint Hardy North acreage with its partner, American Eagle Energy Corporation ("American Eagle").

The Hardy South property is under agreement with a large, independent, Canadian oil and gas producer and encompasses 34 contiguous sections.  This agreement calls for Passport, as the operator, along with its 50% partner, American Eagle, to fund the drilling of 2 horizontal Bakken commitment wells.  The drilling and completion of these wells will earn a 100% working interest (50% net to Passport) in the spacing unit until payout of the wells, subject to a convertible gross overriding royalty and a 65% working interest (32.5% net to Passport), after payout of the wells, in 10 sections of land.  The $2.6 million financing that Passport completed in April of this year ($0.15 per common share and $0.17 per flow through share) has been allocated to fund these wells.

Surface conditions permitting, the first of two horizontal commitment wells is scheduled to spud before the end of the second quarter.

Following the two commitment wells, the companies have the option to drill five additional wells under the same terms and conditions to earn the full 34 section block.

In addition to these agreements, Passport has also participated in a December 2011 Saskatchewan crown land sale to acquire an additional 7 sections (6.25 net to Passport) of land in the Hardy area.  


The Company also has a 60% working interest in 43,000 gross acres in the Sweetgrass Arch area of the Alberta Bakken play trend in Montana.

The Company is a junior natural resource exploration company focused on the acquisition, exploration, and development of economically viable natural resources, with a focus on Bakken oil projects.

The Company trades on the TSX Venture Exchange and the CNSX under the trading symbol "PPO".

The CNSX does not accept responsibility for the adequacy or accuracy of this news release.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

For more information, please refer to the Company's public documents available on SEDAR (www.sedar.com).

For further information contact:

Bruce Murray
Chairman, President, & CEO
Tel: 403-930-4061
Email: bmurray@passportenergy.com
Website: www.passportenergy.com


To view this press release as a web page, please click on the following link:
http://www.usetdas.com/pr/passport06012012.htm



Source: Passport Energy Ltd. (PPO - CNSX)
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