PRD Energy Inc. announced that it has been awarded the Uelzen Exploration License covering approximately 200,000 acres in Germany. The license is located onshore in the state of Lower Saxony, Germany and has been awarded to PRD Energy GmbH, a wholly-owned subsidiary of the company. The Uelzen license is situated adjacent to the Steinhorst Exploration License, which the Company currently holds.

The Uelzen license is awarded for an initial period of five years and includes all rights surface to basement. Pursuant to the terms of the license, PRD is committed to bringing at least two wells onto production within the initial five year term. The award of this license is subject to the review and approval by various municipal and state government authorities.

PRD Energy GmbH has also applied for several other exploration and production licenses in Germany on behalf of PRD, and anticipates responses to these applications in the coming months. The company announced that the 3D seismic shoot has been completed covering the Boerger pool. The company is currently processing the seismic data, the results of which are anticipated to increase its confidence on the initial re-entry well and provide greater certainty of additional well locations.

Licensing and permitting of the drilling and completions operations at Boerger are currently underway and expected to continue into the second quarter of 2013. The company recently reached an agreement with the incumbent operator of certain pools covering the Steinhorst Exploration Licence to license legacy well and seismic data. In exchange, PRD has agreed to pay fixed cash amounts for the seismic and well data acquired.

The licensing of this data is expected to accelerate PRD's development plans in Germany relative to acquiring the data by other means which would have taken several years to replicate. These arrangements should also reduce the risks and initial cash outlay to PRD of evaluating and exploring the productive potential of this license area.