Pacific Energy Resources Ltd.
TSX : PFE

Pacific Energy Resources Ltd.

June 05, 2007 09:00 ET

Pacific Energy Initiates Onshore California Development Drilling Program

LONG BEACH, CALIFORNIA--(Marketwire - June 5, 2007) - Pacific Energy Resources Ltd. (the "Company") (TSX:PFE) is pleased to announce that it has begun an onshore California development drilling program.

San Joaquin Basin - McDonald Anticline Oil Field

Two development wells have been drilled in the Company's McDonald Anticline oil field in the San Joaquin Basin of California utilizing Kenai Rig #4. The first well, Intex Layman 11, was drilled to a depth of 2,414 feet. The well log shows 260 feet of gross (160 feet net) oil sand. The Company is awaiting the final analysis of sidewall cores, triple combo log, electro-magnetic image and dipmeter logs and will complete the well with a production rig within the next 2 weeks. The second well, Layman Honolulu H-10 was drilled to a total depth of 2,495 feet. Based on mud log, this well shows 200 feet net of heavy oil sands in 3 zones and 620 feet net of light oil sands in 6 zones. A suite of electric logs is being analyzed now and the well is scheduled to be completed within the next three weeks. A complete review of these wells along with the previous petro-physical data will be used to determine future drilling targets in this field.

Los Angeles Basin - Wilmington Oil Field

Ensign Rig #9 has moved onto location to start drilling PERL 35. The well will be drilled to a measured depth of approximately 5200 feet (3200 feet subsea). This is the first well of a planned five well infill drilling program. All wells are directional and will be drilled to a subsea depth of 3100-3300 feet. The Company plans to drill an additional 62 infill wells over the next 3-4 years in this field to fully develop the assets.

The Company's on-shore reserves are estimated by DeGolyer & MacNaughton (Los Angeles Basin) & Netherland, Sewell & Associates, Inc. (San Joaquin Basin). These independent evaluators estimate these reserves to be 15.1 MMBOE (Proved) and 30.7 MMBOE (Proved, Probable & Possible) as of Dec. 31, 2006. In addition, the Company's offshore reserves are estimated to be 20.9 MMBOE (Proved) and 65.9 MMBOE (Proved, Probable and Possible) as estimated by Netherland, Sewell & Associates, Inc.

About Pacific Energy Resources Ltd.

The Corporation is an oil and gas exploration and development company based in Long Beach, California, U.S.A. Additional information relating to the Corporation may be found on SEDAR at www.sedar.com.

ON BEHALF OF THE BOARD OF DIRECTORS

PACIFIC ENERGY RESOURCES LTD.

Mr. Darren Katic, President

Note: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results, are based on current expectations or beliefs and include, but are not limited to, statements concerning the timing, terms and amounts of the planned private placement and credit facility. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward-looking statements include statements in which the Corporation uses words such as "continue," "efforts," "expect," "believe," "anticipate," "confident," "intend," "strategy," "plan," "will," "estimate," "project," "goal," "target," "prospects," "optimistic", "potentially", "looking forward", "possibility", or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the parties' ability to satisfy conditions precedent to the proposed transactions, including without limitation, obtaining regulatory and stockholder approval, the Corporation's ability to meet its obligations under its existing and anticipated contractual obligations, the impact of changes in market conditions and the Corporation's business environment, including actions of competitors; the occurrence of acts of terrorism or acts of war; changes in governmental laws and regulations, including income and other taxes; and other factors as may be discussed in the documents filed by the Corporation on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. In particular, statements with respect to the Corporation's expectations that it will be able to close under agreements with respect to the acquisition of the Beta Unit interests, that it will be able to obtain regulatory approvals and that it will be able to obtain necessary financing are forward-looking statements, and the Corporation can provide no assurance that any of these transactions will occur. The Corporation undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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