April 21, 2010 (FinancialWire) — Pegasi Energy Resources Corp. (OTCBB: PGSI), an East Texas based oil and gas exploration and production company headquartered in Tyler, Texas, announced the execution of its second lease fund agreement with Calston Exploration USA Inc. in Houston, TX, a subsidiary of Calston Exploration in Calgary, Canada.

The $4.7M will be used to renew or extend existing leasehold Pegasi presently has and to acquire new leasehold in the Cornerstone Project. The agreement allows for Calston to earn a 50% interest in existing leases that Pegasi holds within the area of mutual interest without diluting the companies' net interest in the leasehold. Calston pays for 100% of the cost for a 50% interest. The company earlier reported a Lease Fund agreement for up to $4M with an independent company in Houston, TX. The agreements cover two separate areas controlled by an AMI within the Companies' large Cornerstone Project.

Mike Neufeld, president and CEO, said, "These agreements allow us to protect our present position and to add to our acreage and drilling inventory."

The Cornerstone Project area has produced over 400 million barrels of oil and 2.3 trillion cubic feet of gas. The company is focused on applying new horizontal drilling and multistage frac technology to substantially increase the recovery of the substantial reserves which remain.

Pegasi Energy Resources Corp. is an organic growth-oriented independent oil and gas exploration and production company headquartered in Tyler, Texas.

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