Primera Energy Resources Ltd.

February 22, 2010 16:00 ET

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

PORT OF SPAIN, TRINIDAD & TOBAGO AND CALGARY, ALBERTA--(Marketwire - Feb. 22, 2010) - Primera Energy Resources Ltd. (TSX VENTURE:PTT) ("Primera" or the "Corporation") is pleased to provide a corporate update.

Block WD-4

The Corporation plans to drill up to two (2) side-track wells to recover reserves lost in the original legacy wells on Block WD-4. The first side-track well, PS263RD, was be spud February 19, 2010 and will be drilled to a total depth of approximately 5,200'. It is expected to take approximately 12 days to reach target depth. The drilling of the second side-track well is contingent upon the timing of drilling operations at PS263RD, as well as preparations for the drilling of the first well on the Cory Moruga Block as the same drilling rig has been contracted for both these operations.

Cory Moruga Block

In accordance with the previously announced Farm-In Agreement, Petro Andina (Trinidad) Ltd. (an indirect subsidiary of Parex Resources Inc.), the Corporation and Primera Oil and Gas Limited were to have commenced the drilling of the first of two (2) exploration wells on the Cory Moruga Block by February 28, 2010. The parties are seeking an extension of this date from the Ministry of Energy and Energy Industries due to surface access delays and expect to receive approval very shortly. These delays have resulted in an expected spud date of late March 2010 for the initial well. In addition, the parties have decided to drill the Firecrown prospect as the first commitment well instead of the previously announced Green Hermit prospect. The Firecrown prospect will be drilled to a commitment depth of 10,500 feet and is expected to take approximately 45 days to be drilled.

In respect of the Cory Moruga Block, the farmee, Petro Andina (Trinidad) Ltd., will earn a 50% working interest in the 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 10,500 feet each. 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) Ltd. - 50.0%.

The Corporation continues to investigate and evaluate potential exploration and production opportunities and will provide further updates on these as they become available. The Corporation has entered into an agreement to dispose of its non-core non-producing Canadian lands for a marginal profit. There were no reserves assigned to these disposed lands.

Statements in this press release may contain forward-looking information including expectations of future operations, 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 issuer. 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 development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, or reservoir performance, 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.

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

Contact Information

  • Primera Energy Resources Ltd.
    Patrick Acham
    Chief Executive Officer
    (868) 677-7253
    Primera Energy Resources Ltd.
    Phil Collins
    Managing Director
    (406) 630-2024
    Primera Energy Resources Ltd.
    Gord Harris
    Managing Director
    (403) 862-0615