SOURCE: Pacific Energy Resources Ltd.

February 01, 2007 15:07 ET

PACIFIC ENERGY RESOURCES LTD. ANNOUNCES CLOSING OF FINAL TRANCHE OF EQUITY FINANCING - INCREASING THE TOTAL PROCEEDS RAISED TO APPROX. US$85 MILLION

LONG BEACH, CA -- (MARKET WIRE) -- February 1, 2007 --



PACIFIC ENERGY RESOURCES LTD. 111 West Ocean Blvd. Long Beach, California 90802 Telephone: (562) 628-1526; Fax: (562) 628-1536

February 1, 2007

NEWS RELEASE

PACIFIC ENERGY RESOURCES LTD. ANNOUNCES CLOSING OF FINAL TRANCHE OF EQUITY FINANCING - INCREASING THE TOTAL PROCEEDS RAISED TO APPROX. US$85 MILLION

Long Beach, California, February 1, 2007 - Pacific Energy Resources Ltd. (TSX: PFE) (the "Corporation") announces that further to its news releases of December 6, 2006, and January 3, 2007, the Corporation has completed a final tranche closing of its equity private placement in the amount of US$9.7 million (CAD$11.45 million), placed with D&D Securities Company and Octagon Capital Corporation acting as agents. Accordingly, the Corporation has issued 8,812,129 subscription receipts @ CAD$1.30 per subscription receipt, which subscription receipts have the same terms as those issued in the prior closings. In relation to this portion of the financing, the Corporation issued 881,212 broker warrants on the same terms as the broker warrants issued in the prior closings. The broker warrants and the proceeds from this portion of the private placement have been placed in escrow and will be released upon completion of certain conditions (refer to December 6, 2006 news release).

Total proceeds raised from this equity financing were approximately US$85 million. In addition US$65 million was funded by Senior Credit facility; bring the total funds raised to US$ 150 million. Upon release from escrow, the proceeds received from these financing will be used to finance obligations related to the acquisition of the Beta Field and subsequent redevelopment (refer to the Corporation's news release of December 6, 2006 for further details).

"This is a transforming event for the Company, the Beta Oil field acquisition represents a unique and rare opportunity not often seen in the industry" said Darren Katic, President. "Beta has established production and a significant proved reserve base; we expect our redevelopment activities to add over 8,000 boe/day, net to the Company, by 2009."

The acquisition is closed pending regulatory approvals, the effective date of sale is November 1st 2006. The Company expects the regulatory requirements to be satisfied no later than March 31st 2007.

The Beta Oil Field is located in San Pedro Area, in Federal waters nine miles offshore Long Beach, California. The leases in question are POCS 300, 301 and 306. A complex of two production platforms (Eureka and Ellen) and a facilities Platform (Elly) handle production from these leases.

The Beta Field was discovered in 1976 by Shell Oil Company. Production started in 1981 from Platform Ellen. Production began on Platform Eureka in 1985. Peak production from the Beta Field was 20,800 barrels of oil per day in 1986. Cumulative production through 2004 for Platforms Ellen and Eureka is estimated at 76,000,000. Eureka accounted for nearly 38,000,000 barrels of oil from 1985 until the production was idled in 1999, at which time it was averaging over 4,400 barrels of oil per day. Currently, production from Ellen is about 2000 boe/day.

Netherland Sewell & Associates (NSA) estimated the reserves as of 5/1/06 as the following: Proved Reserves of 19.78 Million barrels of oil and 3.23 Bcf of gas. It also estimated 11.61 Million barrels of Probable oil reserves, 1.93 Bcf of Probable gas reserves, 31.26 Million barrels of possible oil reserves and 4.84 Bcf of Possible gas reserves.

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

ON BEHALF OF THE BOARD OF DIRECTORS OF

PACIFIC ENERGY RESOURCES LTD.

Mr. Darren Katic, President

Boardmarker Group T : 562 628 1526 T: 403 517 2270 E: dkatic@pacenergy.com E: ir@boardmarker.net www.pacenergy.com www.boardmarker.net

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" 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. 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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