Galleon announces significant extension to the Puskwa oil pool

    CALGARY, Feb. 5 /CNW/ - Galleon Energy Inc. ("Galleon") has completed a
vertical well located at 12-13-72-26W5M (100% interest) which extends the
northern border of the Puskwa light sweet oil pool adding approximately
2 1/2 sections (1,600 acres) of 100% Galleon land to the pool. Currently, the
pool delineation is approximately 2-3 miles in width and 5 miles in length
based on drilling results, geological and 3D seismic interpretation.
    To December 31, 2006, Galleon has drilled 12 wells (11 cased wells) in a
4 section area to the southwest of this northern extension. As previously
disclosed, tested capacity of these 11 wells is in excess of 11,150 boepd. The
wells are currently under EUB imposed restricted production rates pending
regulatory approval. It is expected that production from the 12-13 well will
also be initially restricted by the EUB.
    The 12-13 well is located approximately 5 miles from the first major well
in the pool located at 16-32-71-26W5M. One well (100% interest) is currently
drilling and is located a further 1.5 miles northeast of the 12-13 well. One
well (100% interest) is planned to be drilled in February and is located a
further 4.5 miles northeast of the 12-13 well. Depending upon the success of
the drilling program, up to 25 wells are planned at Puskwa in the remainder of
2007 and 2008.
    The 12-13 well was rig released on January 26, 2007. The well was drilled
to a total depth of 10,630 feet and encountered 26 feet of oil pay in the
Beaverhill Lake formation. The well is expected to commence production at
restricted rates of between 150 and 250 boepd (88% oil and 12% gas) with no
water. The quality of the light sweet oil is 38 degrees API.

    Galleon is a technically oriented high growth oil and gas company with
focused operations in the Peace River area of Alberta. Galleon has access to
over 1 million gross acres of land.
    Galleon has approximately 57.8 million Class A shares and 922,500 Class B
shares issued and outstanding which trade on the TSX under the symbols "GO.A"
and "GO.B".

    ADVISORY: Certain information regarding Galleon Energy Inc. in this news
release including management's assessment of future plans and operations,
number, type and timing of wells to be drilled, the plan and development of
certain prospects, production estimates, productive capacity and allowable
production rates for the wells, may constitute forward-looking statements
under applicable securities laws and necessarily involve risks including,
without limitation, risk that regulatory approval to allow increased
production at Puskwa will not be obtained or be delayed for an extended period
of time, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers, inability to
retain drilling rigs and other services, capital expenditure costs, including
drilling, completion and facilities costs, unexpected decline rates in wells,
wells not performing as expected, incorrect assessment of the value of
acquisitions, failure to realize the anticipated benefits of acquisitions,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources. As a
consequence, actual results may differ materially from those anticipated in
the forward-looking statements. Readers are cautioned that the foregoing list
of factors is not exhaustive. Additional information on these and other
factors that could effect Galleon's operations and financial results are
included in reports on file with Canadian securities regulatory authorities
and may be accessed through the SEDAR website (, at Galleon's
website ( Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news release
and Galleon does not undertake any obligation to update publicly or to revise
any of the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by
applicable securities laws.

    Disclosure provided herein in respect of barrels of oil equivalent (boe)
may be misleading, particularly if used in isolation. A boe conversion ratio
of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the

For further information: SEE OR CONTACT: Steve
Sugianto, President and Chief Executive Officer, (403) 261-9287,; Glenn R. Carley, Executive Chairman, (403) 261-9277,; Shivon Crabtree, Vice President and Chief Financial
Officer, (403) 261-9276