Primera Energy Resources Ltd.
TSX VENTURE : PTT

September 24, 2009 09:00 ET

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

CALGARY, ALBERTA AND PORT OF SPAIN, TRINIDAD & TOBAGO--(Marketwire - Sept. 24, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Primera Energy Resources Ltd. ("Primera" or the "Corporation") (TSX VENTURE:PTT) is pleased to announce a private placement for up to 10,000,000 units of the Corporation ("Units") at a price of $0.35 per Unit for total gross proceeds of approximately $3,500,000. Each Unit is comprised of one Common Share and one Common Share purchase warrant ("Warrant"). Each Warrant entitles the holder to acquire one Common Share at an exercise price of $0.55 for a period of one (1) year from the closing date.

The proceeds from the private placement will be used for general working capital, exploration and development work on the Corporation's assets, including the participation of the Corporation in the drilling of two exploration wells on the Moruga Block as previously announced on September 17, 2009.

The first of these Moruga Block wells must be spud by February 28, 2010 and 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%.

The private placement is subject to TSX Venture Exchange acceptance.

The Corporation has also commenced preparation work for the drilling 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'.

About the Corporation

The Corporation is a TSX Venture Exchange listed issuer which currently produces approximately 255 barrels of oil per day pursuant to a lease operatorship in South Central Trinidad, has a 25% entitlement to the Cory Moruga 'E' Block and a 10% entitlement to a Production Sharing Contract for onshore India block CB-ONN-2005/11 . The Corporation also holds a 47.5% average working interest in four sections of land in the Windfall area of west central Alberta, Canada. The prospect is a resource play targeting liquid rich gas that has significant potential and regional implications in the area for the Corporation.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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
    or
    Primera Energy Resources Ltd.
    Philip E. Collins
    Managing Director, Geology and Exploration,
    Western Canadian Sedimentary Basin
    (403) 532-5900
    or
    Primera Energy Resources Ltd.
    Gordon Harris
    Managing Director, Mergers and Acquisitions
    and Business Development
    (403) 532-5900