PRD Energy Inc.: Announces Operational Update

After setting a whipstock at 660m, PRD encountered directional drilling challenges in soft sediments requiring changes to the well plan. The decision has now been made to mill the existing casing, set the whipstock point at approximately 1,200m and then drill to a depth of approximately 2,024m followed by a 400m horizontal leg. Operations to remove the existing whipstock will commence the week of September 16 whereafter plans to complete the balance of the program will be finalized.

The information gained to date on this first program will prove valuable to the Company's future drill design and operations on its other blocks in Germany.

About PRD Energy

PRD Energy Inc. is a Calgary based oil and gas company engaged in the exploration, development and acquisition of, natural gas and crude oil, in Germany. All activities of the Company in Germany are undertaken by its wholly-owned subsidiary, PRD Energy GmbH. PRD's common shares are listed on the TSX Venture Exchange with the symbol "PRD".

Forward-looking information

This news release contains forward-looking information relating to operations, including the program to drill and complete the Borger 7A well, and other statements that are not historical facts. Such forward-looking information is subject to important risks, uncertainties and assumptions. The results or events predicated in this forward-looking information may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on this forward-looking information.

Forward-looking information is based on certain factors and assumptions regarding, among other things, the evaluation of production data, engineering studies, and geological and geophysical analyses, the results of which are typically inconclusive or subject to varying interpretations; costs of drilling, completing, equipping and operating wells which is typically uncertain before operations commence; the impact of increasing competition; the general stability of the economic and political environments in which the Company operates or owns interests; the timely receipt of any required regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability to operate in a safe, efficient and effective manner; the ability of the Company to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas products, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks associated delays imposed by or resulting from compliance with environmental and other governmental and or contractual requirements; pressure or irregularities in geological formations; increased in the cost of, or shortages or delays in the availability of, electricity, supplies, materials, drilling or workover rigs, equipment and services of qualified personnel; equipment failures or accidents; unforeseen expenses; adverse weather conditions; surfaces access restrictions; oil or natural gas gathering, transportation and processing availability restrictions or limitations; instability of the economic and political environments in which the Company operates or owns interests, oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, the inability to settle the definitive terms of the farmout arrangements, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, reliance on key personnel, regulatory risks and delays, including risks relating to the acquisition of necessary licenses and permits, environmental risks and insurance risks.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.

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



Contact

PRD Energy
Michael Greenwood, Chairman and Chief Executive Officer
(403) 234-0501
(403) 234-0511

PRD Energy
Mark Hornett, President and Chief Operating Officer
(403) 234-0501
(403) 234-0511

PRD Energy
Jeff Scott, Vice President, Finance and Chief Financial Officer
(403) 234-0501
(403) 234-0511
www.prd.com