Pearl Exploration and Production Ltd.
TSX VENTURE : PXX

Pearl Exploration and Production Ltd.

April 24, 2008 17:53 ET

Pearl Corporate Update

CALGARY, ALBERTA--(Marketwire - April 24, 2008) - Pearl Exploration and Production Ltd. ("Pearl" or the "Company") (TSX VENTURE:PXX)(FIRST NORTH:PXXS) reports that it has entered into a binding agreement with a large integrated energy company to sell certain non-core heavy oil producing assets for $75 million.

These assets, principally located in the Lloydminster, Celtic, Pikes Peak and Thunderchild areas of Saskatchewan, currently produce approximately 3,200 Boe/d and are part of the non-core asset package that the Company had announced its intentions to investigate selling on January 8, 2008.

"We are very pleased with the outcome of this non-core asset rationalization effort. While these assets make up approximately 30% of our current production and cash flow they are only 10% of our proved plus probable reserves and 3% of our proved plus probable plus possible reserves. By disposing of these assets we will be better able to concentrate on our larger resource to reserve conversion opportunities both in terms of capital and in terms of human resources. In addition this sale will allow Pearl to eliminate its current debt balance of approximately $30 mm," stated Keith Hill, President and CEO of Pearl.

The sale is expected to close prior to the end of May. Canaccord Enermarket acted as exclusive financial advisor to Pearl in this disposition.

Pearl Exploration and Production Ltd. is a public company focused on delivering disciplined growth by establishing a North American portfolio of heavy oil projects with an emphasis on large resource opportunities. Additional information on Pearl is available on the Company's website at www.pearleandp.com.

Pearl's Certified Advisor on First North is E. Ohman J:or Fondkommission AB.

Forward-looking statements: This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pearl Exploration and Production Ltd.
    Keith Hill
    President and Chief Executive Officer
    (604) 689-7842
    Email: khill@namdo.com
    or
    Pearl Exploration and Production Ltd.
    Randy Neely
    Chief Financial Officer
    (403) 716-4054
    Email: randy.neely@pxx.ca
    or
    Pearl Exploration and Production Ltd.
    Sophia Shane
    Corporate Development
    (604) 806-3575
    Email: sophias@namdo.com
    Website: www.pearleandp.com