PTP Petrichor Energy Inc

Pacific Northern Gas Ltd. (TSX:PNG)(TSX:PNG.PR.A) announced today that net
income for the three months ended March 31, 2008 was $4.5 million, compared with
net income of $3.9 million for the corresponding period in 2007. After providing
for preferred share dividends, the earnings per common share in the three months
ended March 31, 2008 were $1.21 compared with earnings per common share of $1.06
for the same period in 2007.


Net income for the quarter was higher in 2008 compared to 2007 by approximately
$0.6 million due mainly to the higher allowed return on equity ("ROE") rate of
9.27% in 2008 compared to 9.02% in 2007 in the Western system and the Tumbler
Ridge division of the Northeast system and the higher ROE of 9.02% in 2008
compared to 8.77% in 2007 in the Fort St. John/Dawson Creek division of the
Northeast system. In addition, the Company had higher than projected net
residential customer additions and large commercial transportation volumes,
primarily in the Northeast system, compared to the 2008 forecast additions and
volumes used for ratemaking purposes.


The Company continues to pursue a project to loop its mainline transmission
system from Kitimat to Summit Lake (the "KSL Project") through its 50 percent
ownership of Pacific Trail Pipelines Limited Partnership ("PTP"). The KSL
Project would provide gas transportation services for up to 1.0 billion cubic
feet per day from the proposed Kitimat LNG Inc. liquefied natural gas ("LNG")
receiving and regasification terminal (the "Terminal"), to be located
approximately 15 kilometers southwest of Kitimat, and would entail the
construction of approximately 470 kilometers of a 36 inch diameter pipeline and
associated compression facilities, at a cost of $1.2 billion based on estimates
made in 2006.


Included in net income for the three months ended March 31, 2008 are after-tax
charges of $0.2 million or $0.07 per share relating to the Company's share of
KSL Project development expenditures compared to $0.3 million or $0.09 per share
for the corresponding period in 2007.


The Company's share of planned development expenditures for the KSL Project in
the last nine months of 2008 is expected to be approximately $0.3 million before
income taxes ($0.06 per share, net of income taxes). The Company's share of
further KSL Project development expenditures will continue to be expensed until
suitable commercial arrangements for firm gas transportation services by PTP are
in place.


Residential deliveries were approximately 5 percent higher in the three months
ended March 31, 2008 and total commercial deliveries were 6 percent higher,
relative to deliveries over the same period in 2007. Management believes that
weather was a key factor in the increase in both the residential and the
commercial deliveries, as it was approximately 5 percent colder for the three
month period ended March 31, 2008 compared to the same period in 2007. The
weather was also, 4 percent colder than normal for the three month period ended
March 31, 2008, with "normal" based on the average of actual temperatures in the
Company's service areas for the preceding 10 years.


Industrial deliveries were lower by approximately 5 percent for the three month
period ended March 31, 2008 compared to the same period in 2007. The decrease in
industrial deliveries is comprised of a 1 percent decrease in large industrial
customer deliveries and a 10 percent decrease in small industrial deliveries,
primarily in the Western system. The reductions in small industrial customer
deliveries relate primarily to customers in the forestry industry. Deferral
accounts are in place that recover or refund margin differences resulting from
deliveries to large industrial customers and to some small industrial customers
varying from the forecast approved for ratemaking purposes.


Operating revenues in the three months ended March 31, 2008 decreased to $57.5
million compared with $58.9 million in the corresponding period in 2007. The
decrease was primarily due to a reduction of $1.8 million from the sale of gas
surplus from the Company's customer needs ("off system gas sales"). Any profit
or loss realized on off system gas sales is deferred for future recovery from,
or refund to, the Company's sales customers. The decrease in off system gas
sales in the first quarter of 2008 reflects the impact of a reduction in the
quantity of gas supply purchased on a committed basis in 2008 compared to 2007.
Natural gas commodity prices, which are passed through to the Company's sales
customers without mark-up, are volatile and can result in significant
variability of the Company's reported operating revenues, but do not affect net
income.


Operating margin in the three months ended March 31, 2008 increased to $16.4
million, as compared with $15.7 million in the same period in 2007. The higher
operating margin in the first quarter is primarily the result of the higher
delivery rates to recover the increased 2008 cost of service of approximately
$1.0 million compared to 2007, of which approximately $0.4 million has been
recovered in the first quarter of 2008. In addition, operating margin increased
as a result of higher than anticipated net residential customer additions and
commercial transportation volumes.


Included in project development expenditures and other income deductions for the
three months ended March 31, 2008 are the Company's share of KSL Project
development expenditures expensed by PTP amounting to $0.4 million, before
income taxes.


PTP continues to pursue environmental certification by both the B.C.
Environmental Assessment Office ("BCEAO") and Canadian Environmental Assessment
Agency ("CEAA") of the KSL Project. PTP's Environmental Assessment Certificate
application for the KSL Project is under review and the related assessment
report is scheduled to be completed in May 2008. The Company expects that the
BCEAO and CEAA approvals will be granted in the second and third quarters of
2008, respectively. Subject to a number of other conditions, construction of the
KSL Project by PTP is expected to commence in 2009 for completion in 2011 when
the Terminal is expected to begin operation. Conditions to construction include
the securing of LNG supply by Kitimat LNG Inc., financing for construction of
the Terminal and KSL Project, and regulatory approvals for the KSL Project. The
regulatory approvals for the KSL Project, include the BCEAO Environmental
Assessment Certificate, approvals under the Canadian Environmental Assessment
Act, a Certificate of Public Convenience and Necessity from the Commission and
other permits required from the B.C. Oil and Gas Commission. The Company can
give no assurances that these conditions will be satisfied or that construction
of the KSL Project by PTP will proceed.


The Board of Directors declared a semi-annual dividend of 84.375 cents per share
on the Company's 6-3/4 percent cumulative, redeemable, preferred shares, payable
July 1, 2008 to the shareholders of record at the close of business on June 16,
2008.


The Board of Directors also declared a quarterly dividend of 22 cents per share
on the Company's common shares, payable June 23, 2008 to shareholders of record
at the close of business on June 6, 2008.


Pacific Northern Gas Ltd., for purposes of the Income Tax Act (Canada), and any
similar provincial or territorial legislation, designates all dividends paid by
Pacific Northern Gas Ltd. after December 31, 2005 to be "eligible dividends"
unless otherwise notified by the Company. An eligible dividend paid to a
Canadian resident is entitled to the enhanced dividend tax credit.


Headquartered in Vancouver, British Columbia, Pacific Northern Gas Ltd.
(TSX:PNG)(TSX:PNG.PR.A) owns and operates natural gas transmission and
distribution systems. The Company's western transmission line extends from the
Spectra Energy (formerly Duke Energy) gas transmission system north of Prince
George to tidewater at Kitimat and Prince Rupert, and provides service to 12
communities and a number of industrial facilities. In the northeast, Pacific
Northern's subsidiary Pacific Northern Gas (N.E.) Ltd. provides gas distribution
service in the Dawson Creek, Fort St. John and Tumbler Ridge areas. Further
information is available on the Company's website at: www.png.ca.




First Quarter Consolidated Results
Three Month Period Ended
March 31 ($ thousand, except for per share data)

                                           2008               2007

Operating revenues                      $57,529            $58,960
Cost of sales                            41,173             43,208
                                        -------            -------
Operating margin                         16,356             15,752

Net income applicable to common shares  $ 4,427            $ 3,843
Earnings per common share - basic       $  1.21            $  1.06
Earnings per common share - diluted     $  1.20            $  1.04

Operating cash flow                     $ 5,198            $ 4,781
Additions to plant, property and
 equipment                               (2,053)            (2,527)
Decrease in deferred charges                566                314
Repayment of long term debt                   -               (644)
Decrease in bank indebtedness            (1,800)            (3,774)
Dividends paid                             (806)              (729)

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