KOKO Petroleum Inc.: Corporate Update

KOKO Petroleum Inc. (PINK SHEETS:KKPT) announced today 
that is has funded the first phase of the Redevelopment Program for 
its Corsicana Project with JMT Resources, Ltd. Fort Worth, Texas. 
KOKO will participate in the Development of JMT's Corsicana Field, 
which will implement Enhanced Oil Recovery (EOR) technologies on its 
4,000 acre leasehold located in Corsicana, Texas.

   The primary EOR technology to be applied to the Field is an 
alkaline-surfactant-polymer (ASP) flood. This technology has proven 
to be very effective in partially-depleted fields, especially with 
shallower Fields that typically inhibit the effectiveness of the more 
common EOR technologies. This technology essentially "pushes" fluid 
to the well-bores instead of creating a pressurized environment that 
would cause the oil to move. Pressurizing mature fields has been 
problematic in the past and the ASP flood avoids many the issues 
surrounding re-pressurization.

   The Redevelopment Program will commence operations immediately 
and focus on plugging wells in the Pilot Project Area. JMT has 
indicated that the initial drilling will occur within 30 days. Due to 
the time it takes to engineer the ASP flood, which can only be done 
after the first wells are cored and analyzed, JMT has indicated that 
the actual flood will take up to 6 months to implement, however, all 
of the wells drilled will immediately be put into production and 
generating revenue.

   Texas Railroad Commission field rules state the requisite spacing 
on the Corsicana Field is 2 acres. The KOKO/JMT polymer flood program 
could potentially involve 1000 producing and 1000 injection wells on 
the property.

   Ted Kozub, President and CEO of KOKO stated, "We are very excited 
to get this project off the ground and feel that it has the potential 
to create enormous value for our shareholders. We have structured an 
agreement that allows to us to participate in the upside of this 
great field while mitigating our downside risk and thus protecting 
our shareholders from any loss in value."

   In 1988, Tejas Petroleum Engineers prepared an engineering study 
on the field that estimated the original amount of oil in place in 
the Corsicana Field was approximately 24,000 barrels of oil per acre. 
JMT's current acreage block therefore contained 95 million barrels of 
original oil in place, of which approximately 13% has been produced.

   Geological engineering studies have shown that an effective ASP 
flood could yield as much as 30% to 40% of the original oil in place 
with lifting costs below $7 per barrel.

   Certain statements in this news release may contain 
forward-looking information within the meaning of Rule 175 under the 
Securities Act of 1933 and Rule 3b-6 under the Securities Exchange 
Act of 1934, and are subject to the safe harbor created by those 
rules. All statements, other than statements of fact, included in 
this release, including, without limitation, statements regarding 
potential future plans and objectives of the company, are 
forward-looking statements that involve risks and uncertainties. 
There can be no assurance that such statements will prove to be 
accurate and actual results and future events could differ materially 
from those anticipated in such statements. Technical complications 
which may arise could prevent the prompt implementation of any 
strategically significant plan(s) outlined above.

   


   KOKO Petroleum Inc. (PINK SHEETS:KKPT)