Primera Energy Resources Ltd.
TSX VENTURE : PTT

May 10, 2011 09:45 ET

Primera Energy Resources Ltd. (TSX-V:PTT) Announces Corporate Update

PORT OF SPAIN, TRINIDAD & TOBAGO and CALGARY, ALBERTA--(Marketwire - May 10, 2011) - Primera Energy Resources Ltd. (TSX VENTURE:PTT) ("Primera or the "Corporation") is pleased to provide the following corporate update.

Block WD-4

The Corporation has completed drilling and casing the first two wells in its 2011 drilling campaign. The first well, PS 131RD was drilled to a depth of 5,626 feet and casing was cemented at 5,524 feet. The well encountered a total of 255 feet of net pay, of which 109 feet will be initially completed in.

The second well, PS 132RD was drilled to a depth of 5,100 feet and casing was cemented at 5,100 feet. The well encountered 250 feet of net pay, of which 80 feet will be initially completed in.

The Corporation has received all the necessary regulatory approvals to complete the wells. As such, a work over rig is expected to be mobilized within the next 24 hours to the PS131RD well location for completion operations, following which well PS132RD will be completed and put onto production.

Primera has identified 13 sites for their present drilling program which is anticipated to substantially increase production within the next twelve months and is continuing with its reservoir characterization study which is aimed primarily at identifying additional drilling opportunities on the block.

About PERL

PERL is a TSX Venture Exchange listed issuer which currently produces approximately 275 barrels of oil per day pursuant to a lease operatorship in South Central Trinidad, has a 16.2% entitlement to the Cory Moruga Block and a 10% entitlement to a Production Sharing Contract for onshore India block CB-ONN-2005/11. The prospect has significant potential and regional implications for PERL.

PERL currently has an approximate working capital surplus of $3.0MM and approximately 55.4 million common shares outstanding.

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.

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