Primera Energy Resources Ltd.
TSX VENTURE : PTT

August 11, 2008 13:57 ET

Primera Energy Resources Ltd. (TSXV:PTT) Operations Update

PORT OF SPAIN, TRINIDAD & TOBAGO AND CALGARY, ALBERTA--(Marketwire - Aug. 11, 2008) - The board of directors of Primera Energy Resources Ltd. ("Primera" or the "Corporation") (TSX VENTURE:PTT) is pleased to provide an update on the farm-in on the Cory Moruga Block ("Moruga Block") and other corporate matters.

Primera has received communication from the Ministry of Energy of Trinidad and Tobago for the approval of the farm-in for 25% of the onshore Moruga Block and for the assignment of such interest effective July 30, 2008. The assignment of the 25% of the Moruga Block is subject to final documentation in the ordinary course. In accordance with the transfer requirements, Primera has advanced its 25% share of the exploration and seismic costs to be held in trust pending closing of the assignment. This amount was a total of USD$2,413,320. On the Moruga Block, the approximate 85 sq km 3D seismic program has been shot and completed last December. Interpretation of the seismic data has commenced and the Corporation with its partner has begun planning for an exploration well on the Moruga Block.

The Moruga Block is located onshore in the south central area of Trinidad and is approximately 7,443 acres and is adjacent to infrastructure and existing producing pools, owned jointly by British Gas Trinidad and Tobago and Petrotrin.

Onshore on the 100% owned Block WD-4, the Corporation has sourced a drilling rig and intends to drill two replacement wells to commence in September, 2008. The Corporation is targeting a multi-zone oil development project.

The Corporation is also pleased to report that a total of 3,582,665 of the $0.30 purchase warrants were exercised resulting in total warrant proceeds of approximately $1,074,800 and a total of 149,773 of the $0.20 broker warrants were exercised for total proceeds of approximately $30,000. The remaining 12,417,335 of the $0.30 warrants and the remaining 227 of the Broker Warrants expired in July.

The Corporation now has 44,015,768 Common Shares outstanding, options to acquire 3,193,000 Common Shares outstanding and 7,500,000 warrants outstanding. Each Warrant is exercisable into one Common Share at a price of $0.20 until June 23, 2010 and at a price of $0.22 during the period between June 23, 2010 and June 23, 2011.

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 Corporation. 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.

The TSX Venture Exchange does not accept 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
    President
    (403) 630-2024