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Grid Petroleum Maintains Development Progress With Further Financial Drawdown

LONDON, Sept. 16, 2010 (GLOBE NEWSWIRE) -- Grid Petroleum Corp. (OTCBB:GRPR) is pleased to announce a further drawdown of $200,000 US Dollars from the financial agreement of $5-7.5 million US Dollars, executed in April this year.
/ Source: GlobeNewswire

LONDON, Sept. 16, 2010 (GLOBE NEWSWIRE) -- Grid Petroleum Corp. (OTCBB:GRPR) is pleased to announce a further drawdown of $200,000 US Dollars from the financial agreement of $5-7.5 million US Dollars, executed in April this year.

The funds are to be allocated against ongoing operational items, and to make provision for initial costs relating to the work program devised by Grid Petroleum's Chief Geological and Geophysical Advisor, Robert Murphy, to develop the company's assets in the Jonah field area of Wyoming.

The drawdown brings the total of external investment so far this year to $900,000 US Dollars, and to date the favorable, equity based terms of the investments continue with zero debt accumulated.

Following the vital evaluation tour of the Western USA conducted by Geological Advisors Robert Murphy and Maarten Middelburg together with CEO Paul Watts, an overall review of all aspects relating to the exploration and developments of the company's assets has resulted in further refining of the requirements for the implementation of Phase one of the work scope, encompassing six essential elements of desktop studies previously outlined.

As a result of this review, further discussions with consultancy groups were deemed to be prudent and are now continuing in order to crystallize the most efficient and cost effective route to follow, before finalizing the required agreements with the relevant consultancy groups.

The additional time spent in travelling to the Western United States for on the spot evaluation and subsequent review, has proved essential in formulating a detailed budget plan to efficiently effect further financial drawdowns in the coming months.

As discussions with various consulting groups head towards a conclusion, it is anticipated a final agreement and appointment of a central consultancy group and any other peripheral companies required, will be defined within the coming weeks.

Paul Watts, CEO of Grid Petroleum, said:

"We are delighted to have effected a further financial drawdown from the financial agreement executed in April this year, providing as it does, a signpost that the exploration and development plans of Grid Petroleum are well on course. We are moving solidly forward with commitment and ample provision for the implementation of the first phase of research and exploration, an eagerly anticipated event expected to be commenced in the near future."

About Grid Petroleum

Grid Petroleum Corp (OTCBB:GRPR) is a London, UK based Independent Oil and Gas Exploration Company, with an operational office in Denver Colorado. Grid has assets in Wyoming, neighboring the prolific Jonah Gas Field. For more information, please visit www.gridpetroleum.com.

Legal Notice Regarding Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning gold or other mineral reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present if and when a project is actually developed.

Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of gold or mineral deposits, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of gold or minerals are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in filings on Edgar of other junior mineral exploration companies with the US Securities and Exchange Commission. This announcement may also contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

CONTACT: Grid Petroleum Corp. Investor Relations Andrew Barwicki 1-888-851-6086 www.gridpetroleum.com