PRD Energy Inc PREGF

RE: Our Brother IFR -not quite as you state

[RJ18]

Gulf Shores planned to plug, abandon 15/18a-12 well Gulf Shores Resources Ltd (C:GUL) Shares Issued 79,326,501 Last Close 2/22/2008 $0.19 Monday February 25 2008 - News Release Mr. Michael Turko reports GULF SHORES ELABORATES ON STATUS OF NORTH SEA UK WELL 15/18a-12 Further to Stockwatch news earlier today, Gulf Shores Resources Ltd. wants to to point out that under the terms and conditions of the farm-out agreement entered into with Petro-Canada U.K. Ltd., the 15/18a-12 well was intended to be drilled, logged, tested, and plugged and abandoned. The plugging and abandonment of successful exploration/appraisal wells are common practice in the North Sea. Preliminary interpretation of logs indicates that a 60-foot hydrocarbon column was encountered in the targeted Lower Forties reservoir, of which 45 feet is interpreted as oil pay and 15 feet is interpreted as gas pay. Reservoir sands are described as excellent quality. A modular formation dynamics testing tool (MDT) provided samples of both oil and gas in the Lower Forties. The oil/water contact in the 15/18a-12 well appears to be the same as the contact established in the 15/18a-8 well drilled one kilometre away to the southeast, thereby establishing one continuous pool. The company will integrate well information into geological and geophysical models to determine future operations and commerciality. As a result of Gulf Shores paying 11.11 per cent of the cost to drill, log, test, and plug and abandon the well, the company has earned an 8.33-per-cent interest in block 15/18a, which includes a fallow Jurassic discovery that tested 6,650 barrels of oil per day and 10 million cubic feet per day of gas. 2008 Canjex Publishing Ltd.