P1 ENERGY CORPORATE UPDATE

CALGARY, Oct. 11 /CNW/ - P1 Energy Corp. ("P1" or the "Company"), a Canadian private company with operations in Colombia, previously informed its stakeholders of its intention to acquire the shares of Montco Energy LC ("Montco"), a private Texas, USA company with oil and gas holdings in Colombia and Gabon, subject to its completion of due diligence.

Due diligence conducted by the Company in respect of this transaction and on Montco's records did not achieve results to the satisfaction of P1. Accordingly, the Company has decided not to complete the acquisition of Montco and the parties agreed to end their relationship on October 9, 2010. No representatives of P1, including Mr. Abdel Badwi or Mr. Andrew DeFrancesco, will be involved with Montco.

For further information: Andy DeFrancesco, [email protected], [phone]; or Aaron Stein, [email protected], [phone]