Pacific Energy & Mining Co. (PEMC) announced that it has received approval from the Bureau of Land Management (BLM) of a unitization agreement of the Johnson Bottoms Unit in Uintah County, Utah. This agreement unitizes PEMC property in Brennan Bottoms with property held by Questar Exploration and Production Company, Cimarex Energy Co., and others.

Pacific Energy & Mining Co. announced results of its activities as follows: In GRAND COUNTY, UTAH: Pacific Energy has installed three compressors at its natural gas gathering system. Gas compressors should be operational by end of August 2008. The company expects 3,000,000 cubic feet of natural gas per month. PEMC has also completed two additional oil wells and is in the process of testing them. The company expects about 12 barrels of oil per day. In CISCO SPRINGS FIELD: 1400 acres, 50% interest. PEMC has placed on production three additional oil wells. FLAGSTONE MINING: Muscogee County, Oklahoma. Flagstone deposits. PEMC owns 20% interest in Flagstone Mining. BRENNAN BOTTOMS OIL FIELD. PEMC owns a 7% working interest in the field. Part of PEMC's acreage has been farmed out to Questar Corporation to form the Johnson Bottoms Unit. The Unit formation is currently with the Bureau of Land Management for final approval. Once approved the first horizontal well will be drilled during the next few months.

Pacific Energy & Mining Co. provided estimates of 30 possible drilling locations for both horizontal and vertical wells on its acreage in Uintah County and Grand County, Utah. PEMC has an interest in 1,800 acres North of the Brennan Bottoms lease in Uintah County. This acreage contains twelve drilling locations on proved acreage for both vertical and horizontal drilling. The drilling spacing is 40 acres per well. These locations have possible reserves ranging from 50,000 bbls to 300,000 bbls per location. Well costs are estimated at approximately $2.2 million dollars for a horizontal well in Uintah County. Additionally PEMC has entered into an agreement with Questar, whereby PEMC's interest in Brennan Bottoms acreage will be incorporated into an approximately 8,000-acre Unit operated Questar Exploration and Production. PEMC's interest in Cisco Township contains ten proved undeveloped locations in Grand County. Reserves for these sites range from 20,000 to 160,000 bbls per location. Well costs are estimated at approximately $120,000 per well in Grand County, Utah.