PEMC Pacific Energy and Mining Co (CE)

Pacific Energy & Mining Company (PINKSHEETS: PEMC) today announced the execution of a farmout agreement with Mar/Reg Oil Company, for the drilling of a 2,500-foot lateral in the Federal 4-26 well in Tin Cup Mesa Oil Field, San Juan County, Utah. The oil field is located in the south-central Paradox Basin, 21 miles southeast of Blanding, Utah

PEMC intends to commence drilling of the Federal 4-26 well during the second half of August 2009. The field was discovered by Marathon Oil Company during 1981, and it has produced over 2.6 million barrels of oil and over 3 billion cubic feet of natural gas since its discovery. Production is from a Northwest Southeast trending 120-foot thick carbonate buildup in the Pennsylvanian Upper Ismay formation.

Geological and Engineering analysis of the field has shown that a horizontal well drilled in Section 26 would intersect the fracture system that has not been drained by the vertically drilled wells.

The 4-26 well, when first drilled as a vertical well, produced 310 barrels of oil per day. The Company anticipates greater production from the horizontal lateral. It has produced over 156,000 barrels of oil and 355 million cubic feet of natural gas. Engineering analysis has shown that the well did not efficiently drain the northern portion of the oil field.

Horizontal Wells drilled in similar conditions have had initial productions from 1,000 to 2,000 barrels of oil per day. There is no assurance that the 4-26 well will do the same.

For further information on the Tin Cup Mesa prospect visit www.pemc.us

About PEMC

The Company through a General Partnership holds working interest in oil wells in Cedar Rim Oil Field in Utah and working interest in numerous non-operated oil and gas wells in Oklahoma. Additionally PEMC owns interests in oil and gas fields in Utah.

Two of PEMC Directors have interests in the Tin Cup Mesa Oil Field.

Disclaimer

The foregoing contains forward-looking information within the meaning of The Private Securities Litigation Act of 1995. Such forward-looking statements involve certain risks and uncertainties. The actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or further changes make it clear that any projected results (expressed or implied) will not be realized.

Contact: Worldwide Financial Marketing, Inc. USA Investor Relations Int'l 1 954 360 9998 US 866 360 9998 Email Contact