KOKO Petroleum Inc. Signs Letter of Intent-Texas

KOKO Petroleum Inc. (PINK SHEETS:KKPT) announced today 
that it has signed a Letter of Intent with JMT Resources, Ltd. Fort 
Worth, Texas. KOKO will participate in the Development of JMT's 
polymer flood pilot program on its 4,000 acre leasehold located in 
Corsicana, Texas.

   The pilot program consists of implementing a polymer based flood 
in a specific area of JMT's acreage. The 4,000 acre leasehold, known 
as the Corsicana Field is the oldest oil field in Texas and was 
discovered in the 1890's by a company that eventually became Mobil 
Oil.

   Due to the production techniques utilized to recover the 20 
million barrels of oil (inception to date), which were archaic 
considering the tools available today, only a small portion of the 
total oil in place has been recovered. Implementing an 
alkaline-surfactant-polymer (ASP) flood will cause oil to be "pushed" 
towards the well bore by creating pressure and fluid movement. 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.

   KOKO Petroleum Inc. has committed to fund an ASP pilot program in 
the Corsicana Field, which will cost $1.5 million USD to engineer and 
implement and consist of drilling approximately 13 wells and 
subsequently flooding the identified area with ASP. IF successful, 
KOKO will have the right to participate in the development of the 
entire field as an equal partner with JMT. KOKO will be responsible 
for raising the necessary capital to develop the entire field, which 
is estimated to cost between $7 to $10 million USD.

   In addition, the agreement entitles KOKO to conduct 3D seismic on 
the entire acreage to identify possible deep structures for 
exploration.

   Ted Kozub CEO of KOKO Petroleum Inc. stated the following; "KOKO 
has an opportunity to become involved with veteran oil people in the 
development of this field that combines technology with vast 
resources. We have created a structure that mitigates our downside 
risk while exposing us to tremendous upside potential. This is an 
important step in KOKO Petroleum's financial development and we feel 
it will translate to significant shareholder value."

   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)