Primera Energy Resources Ltd.

May 12, 2011 09:25 ET

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

PORT OF SPAIN, TRINIDAD & TOBAGO and CALGARY, ALBERTA--(Marketwire - May 12, 2011) - Primera Energy Resources Ltd. (TSX VENTURE:PTT) ("Primera or the "Corporation") is pleased to provide the following corporate update.

Cory Moruga Block

The Corporation is pleased to announce that the Ministry of Energy and Energy Affairs in Trinidad has approved the Firecrown 1 ST1 well as an obligation well under the Exploration and Production Licence ("the Licence"). As such, the Corporation has now fulfilled all the Work Obligations as under the Licence.

Mobilization of a workover rig was commenced on May 9th 2011. Once the rig and all ancillary testing equipment are fully mobilized to the well location, well testing and completion will commence. Based on open hole wireline and mud logs, as well as cutting samples, the well encountered hydrocarbon bearing sandstones with oil shows in the secondary Herrera zone from a measured depth of approximately 6,600 ft to approximately 7,220 ft. In the primary Herrera zone, the well encountered hydrocarbon bearing sandstones from a measured depth of approximately 8,150 ft to approximately 8,275 ft. A total of four intervals will be tested in this well.

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% working interest inthe 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.

Contact Information