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Colorado Utah Natural Gas Applies for Drilling Permits

Colorado Utah Natural Gas, Inc. () announced today that it has applied for drilling permits for six wells in Grand County, Utah. The wells are to be drilled as offsets to existing oil and gas wells. Pacific Energy and Mining Company (OTC: PEMC) has an equity position in Colorado Utah Natural Gas.

The wells will range in depth from 800 feet to 1,200 feet and are to test the Dakota and Morrison formations. The company estimates that drilling of the wells will result in the development of approximately 200,000 barrels of oil.

Colorado Utah expects to commence drilling its wells during the last week of May 2005. The company plans to commence an IPO this year in order to fund its future development plans.

Company properties are located in the same area as Questar Corporation and Kerr McGee.

About Colorado Utah Natural Gas

Colorado Utah Natural Gas owns leases in Grand and Uintah counties, Utah, and contain an estimated 15 Bcf of natural gas equivalent reserves. Management of Colorado Utah has over 105 years of combined experience in oil and gas in the State of Utah.

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 future changes make it clear that any projected results (expressed or implied) will not be realized.

Distributed by Market Wire