Pinnacle Energy Corp. Pursues Diversification and Revenue Growth Strategies

CALGARY, Alberta--(BUSINESS WIRE)--Pinnacle Energy Corp. (OTCBB: PENC), an independent oil and gas producer, today announced that the company is pursuing a new business model, diversifying the company’s interests and driving towards increased ongoing revenue and market value. Central to Pinnacle’s new strategy is recasting the organization as a land management company with significant interests in coal, as well as moving forward with its plans to fully exploit Pinnacle’s existing properties that produce oil and gas.

“I am excited at the prospect of transforming Pinnacle into a diversified energy company with interests in oil and gas, as well as coal and land management”

Pinnacle is currently working towards a land acquisition that will see the company take control of significant coal reserves in Montana and Utah, USA. As part of the planned transaction, Pinnacle will also gain access to assets and personnel that will aid the company’s efforts in the land management and coal production marketplaces, with the potential effect of significantly increasing Pinnacle’s overall revenues, operating profit and balance sheet assets.

In addition, Pinnacle’s core business of oil and gas production continues as a going concern, with actively producing oil and gas wells located in Pawnee County, Oklahoma, USA. The company is currently making plans to drill four new wells in the Glencoe Prospect during Q2 of 2009, and plans to leverage current market conditions to cut costs in exploration, production and oilfield operations.

“I am excited at the prospect of transforming Pinnacle into a diversified energy company with interests in oil and gas, as well as coal and land management,” said Nolan Weir, Pinnacle Energy President and member of the company’s Board of Directors. “We believe that the available properties we’ve identified could potentially bring Pinnacle additional enterprise value within the next few years. Negotiations for the potential coal reserves are moving forward rapidly, and we are planning an announcement immediately upon successful closing of the transaction.”

Mr. Weir also stated that he expects the planned transaction to facilitate the addition of key officers and directors to Pinnacle’s management team.

“As we look toward this acquisition, our plan is to supplement and enhance Pinnacle’s management team – we will create a well-rounded group that will take us to the next level,” stated Weir. “The combined effect of these strategic changes and pursuing diversification will see Pinnacle Energy evolve into an enterprise that will continue to generate value for business partners and shareholders.”

Pinnacle Energy Corp. is an independent oil and gas producer focused on acquiring and developing mature oil & gas producing assets. Pinnacle Energy Corp. is headquartered at 333 River Front Ave., Suite 153, Calgary, Alberta, T2G 5R1, Canada and can be contacted at 866.822.0325.

Certain statements included in this release constitute forward-looking statements. These forward-looking statements are based on management’s belief and assumptions derived from currently available information. Although Pinnacle Energy Corp. believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Actual results could differ materially from forward-looking statements expressed or implied herein as a result of a variety of factors including, but not limited to: a decline in the price of, or demand for, oil and gas; general economic conditions; other financial, operational, and legal risks, and uncertainties detailed from time to time in Pinnacle Energy Corp.’s SEC filings. Pinnacle Energy Corp. does not undertake any obligation to publicly update forward-looking statements contained herein to reflect subsequent events or circumstances.