Primera Energy Resources Ltd.
TSX VENTURE : PTT

October 26, 2009 09:00 ET

Primera Energy Resources Ltd. (TSXV:PTT) Announces Corporate Update

CALGARY, ALBERTA AND PORT OF SPAIN, TRINIDAD & TOBAGO--(Marketwire - Oct. 26, 2009) - The board of directors of Primera Energy Resources Ltd. ("Primera" or the "Corporation") (TSX VENTURE:PTT) is please to announce the appointment of Johannes J. Kingma as President of the Corporation effective immediately. Mr. Kingma is currently the CEO of Panwestern Energy Inc. and will focus a portion of his time to the business of Primera as needed. Mr. Kingma's appointment will provide a presence in Calgary and his role will be to oversee the opportunities available to Primera and to work with its current CEO, CFO and Managing Directors to assist in the future growth of the business.

The Corporation has received confirmation from Petrotrin of the renewal of its lease operatorship agreement for Block WD-4 and has also received confirmation of the assignment of its 25% (pre farmout interest) interest in the Moruga Block.

On Block WD-4 the Corporation plans to drill two (2) side-track wells in Block WD-4 to recover reserves lost in the original legacy wells. The first side-track well, PS263RD, is scheduled to be spud towards the end of November, 2009 and will be drilled to a total depth of approximately 5,200'. The second side-track well, PS 211RD, will be spud immediately following the completion of PS263RD and will be drilled to a total depth of approximately 5,450'.

On the Moruga Block, work is underway to source a drilling rig for the first well which must be spud by February 28, 2010. This first well is targeting an oil-prone exploration target called Green Hermit and is a multi-zone stratigraphic/structural trap of Herrera age sandstones adjacent to the Rock Dome high. In respect of the Moruga Block, the farmee, Petro Andina Trinidad, will earn a 50% working interest in the Moruga Block by paying 95% of all costs, to a maximum of US$13,300,000 for drilling and evaluating two exploration wells to a minimum depth of 3,200 meters. The Corporation will pay the remaining 5% to a maximum of US $700,000 for the drilling of the two exploration wells. Any amounts over the US$14,000,000 will be paid in accordance with the after-earned working interests of Primera Oil and Gas Limited - 33.8%; the Corporation - 16.2% and Petro Andina Trinidad - 50.0%.

Primera has also approved the grant of 2,166,000 stock options to eligible participants (a total of 1,830,000 of these stock options were approved for grant to directors and officers of the Corporation). The options will be granted at an exercise price of $0.40 per Common Share and, subject to the Option Plan, will expire five years from the date of grant. The Corporation has determined that exemptions from the various requirements of TSX Venture Exchange Policy 5.9 are available for the granting of the options.

READER ADVISORY

Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income and oil taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

The reader is further cautioned that the preparation of financial statements in accordance with generally accepted accounting principles requires management to make certain judgements and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Estimating reserves is also critical to several accounting estimates and requires judgments and decisions based upon available geological, geophysical, engineering and economic data. These estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes.

The calculations of barrels of oil equivalent ("boe") are based on a conversion rate of six thousand cubic feet ("mcf") of natural gas to one barrel of crude oil. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Primera Energy Resources Ltd.
    Johannes J. Kingma
    President
    (403) 237-5535
    or
    Primera Energy Resources Ltd.
    Patrick Acham
    Chief Executive Officer
    (868) 677-7253
    or
    Primera Energy Resources Ltd.
    Philip E. Collins
    Managing Director
    (403) 532-5900
    or
    Primera Energy Resources Ltd.
    Gordon Harris
    Managing Director, Mergers and Acquisitions
    and Business Development
    (403) 532-5900