Glen Rose Petroleum Corporation's 10-K Reflects Year of Transition

Business Wire,  July 15, 2008  

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Wardlaw Field Development Progressing, Production Rising

Ownership Change, New Board and Management Give New Direction

DALLAS -- Glen Rose Petroleum Corporation (NASDAQ: GLRP), a public company involved in the development of medium gravity crude oil assets, announced today that it has filed its Form 10-K for the year ended March 31, 2008.

Highlights for that year and since include:

* New ownership, Blackwood Ventures LLC, an investment company able to encourage and fund the development of the Company's key property;

* Entirely new Board of Directors

* New management team

* Headquarters moved to Dallas

* Experienced geological and engineering professionals hired to direct the development of the Wardlaw field with enhanced chemical and mechanical technology.

* Shareholder's equity increased to more than $5 million

* A new engineering report for its Wardlaw Field that shows total proved reserves of 701,000 barrels of oil, valued at a 10% discounted rate and risk adjusted to $9.4 million.

Since the end of fiscal year 2008, Glen Rose has subjected 20 wells on the Wardlaw property to a work over program; 10 of those wells have been put into production, and the balance awaits the receipt of additional production equipment.

Also, an application for a Production Swabbing License was heard by the Texas Railroad Commission [TRC] on May 9, 2008 at a full hearing to which an objection was received. The Company expects to hear the ruling of the TRC by the end of August 2008. The Company's application for Swabbing License was for 76 wells and could significantly add to production capability of the field if so granted.

Glen Rose has also begun a Nitrogen Injection Enhanced Oil Recovery Program that currently includes 1 injector and 5 producers. This program is in the process of being expanded to 3 additional injectors and a further 12 to 15 producers. The enhancement program involves the heating and pressurization of nitrogen, which is then injected into a 1.25 acre spaced 5 well spot production area situated in the area of current activity.

Chip Langston, President of Glen Rose, stated, "This was a year of transition for Glen Rose during which we laid the foundations for development of the Wardlaw property. The key to successfully turning a company around is to first stabilize its financial position. The Company made great strides prior to year end, and, as shown actions described in our Form 14C approved in late May and several pending transactions described in our Form 10-K, that progress is continuing. These actions and pending transactions, as shown by the pro forma in our Form 10-K, would have affected our March 31, 2008 financial statements by: dropping current liabilities from $2,870,071 to $616,831 while increasing current assets from $155,666 to $775,666, thereby turning our current ratio from negative to positive. At the same time, the pro forma shows total liabilities fell from $2,957,989 to $1,575,584 and Shareholder's Equity increased to $5,118,900."

Paul Watson, Chairman and Chief Executive Officer, stated, "With renewed financial strength, we are going to be able to substantially expand our operations. Our Nitrogen Injection Program has improved average daily production from one half barrel per day, to an average for last month of over 22 barrels of oil per day. We have 103 wells bores, 44 which are functional, of which we are only utilizing 23. The potential of the Wardlaw Field is promising."

"In addition," Mr. Watson states, "We have a new joint venture partner in Wind Hydrogen, Ltd. and have permitted 10 new drilling locations for drilling in late August. Four of these wells will be in the area where our current wells are clustered, in approximately 360 acres. This will enhance the knowledge of that area with a new logging and core samples. Four will be in the area immediately north of our core operations, which is the Phase 1 area with Wind Hydrogen, Ltd. in the north half of Section 7. Three wells will be more exploratory to better determine the direction and extent of the reservoir in the remaining 10,000 acres of our lease.

"Once these 10 wells are drilled, we will immediately begin to permit 20 plus additional locations, primarily in the north half of Section 7, in order to implement two 13 spot (well) injection pilots this calendar year. In addition, we have taken over the operations of the Dominion well (Wardlaw 6-1) that was drilled to the Ellenberger at 9,400 feet. We believe there are deeper horizons to be explored, but in the mean time, we will use the gas from this well to run our generating needs. We are excited about rolling out the new technologies to an area that has significant proven reserves in place but need the right consistent producing approach, which Glen Rose has."

In the year ended March 31, 2008, Glen Rose's oil and gas income fell from $1,014,734 to $62,025; as a result of the sale of the New Mexico property, and no activity at the Wardlaw property. Total Operating Expenses fell from $5,867,952 to $3,558,744. General administrative expenses were flat, and over $1,886,825 or 53% of current operating expenses were as a result of warrant or option expenses at $1,334,095. The result was a reduced operating loss from ($11,435,134) to ($3,251,650), or ($.46) per share on 7,111,758 weighted average common shares outstanding.