Primera Energy Resources Ltd.
TSX VENTURE : PTT

March 22, 2011 15:12 ET

Primera Energy Resources Ltd. (TSX-V:PTT) Announces Year End Reserves

PORT OF SPAIN, TRINIDAD & TOBAGO and CALGARY, ALBERTA--(Marketwire - March 22, 2011) - Primera Energy Resources Ltd. ("PERL" or the "Corporation") (TSX VENTURE:PTT) is pleased to announce its 2010 year end reserves. Highlights of the reserves include the following:



-- gross proved plus probable reserves of 2,352 MBOE (100% oil) with total
gross proved serves of 1,574 MBOE;
-- the net present value of the Corporation's year end 2010 total proved
plus probable reserves, at 10% discounted value before tax, is $43.8
million; and
-- a net present unit value of $29.15/BOE based before income tax expenses
and discounted at 10%, an increase from $24.66/BOE from the previous
year.

Summary of Oil and Gas Reserves (Forecast Pricing)
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Gross Reserves Net Reserves
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Heavy Natural Heavy
Crude Gas Natural Crude Natural
Oil Liquids Gas Oil Liquids Gas
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Mstb Mstb Mmcf Mstb Mstb Mmcf
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Proved
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Developed Producing 552 - - 337 - -
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Developed Non-Producing 50 - - 30 - -
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Undeveloped 972 - - 669 - -
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Total Proved 1,574 - - 1,036 - -
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Probable 778 - - 468 - -
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Total Proved plus
Probable 2,352 - - 1,504 - -
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Note:
(1) Net interest reserves are calculated after production and gross
overriding royalties.


Net Present Value of Future Net Revenue of Oil and Gas Reserves
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Before Future Income Tax Expenses and
Discounted at
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0% 10% 15% 20% Unit Value
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(MCDN$) (MCDN$) (MCDN$) (MCDN$) (CDN$/BOE)
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Proved
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Developed Producing 17,827 11,957 10,285 9,049 35.48
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Developed Non-Producing 1,203 413 277 197 13.77
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Undeveloped 28,577 17,842 14,528 12,013 26.67
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Total Proved 47,607 30,213 25,090 21,258 29.16
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Probable 30,626 13,628 9,957 7,600 29.15
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Total Proved plus Probable 78,233 43,840 35,046 28,858 29.15
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After Future Income Tax Expenses and Discounted at
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0% 10% 15% 20%
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(MCDN$) (MCDN$) (MCDN$) (MCDN$)
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Proved
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Developed Producing 7,869 5,329 4,596 4,051
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Developed Non-Producing 347 92 53 32
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Undeveloped 10,966 5,354 3,692 2,468
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Total Proved 19,182 10,775 8,341 6,550
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Probable 14,093 6,246 4,548 3,460
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Total Proved plus Probable 33,275 17,020 12,888 10,011
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Royalties,
SPT and Operating Development
Revenue PPL(1) Costs Costs
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(MCDN$) (MCDN$) (MCDN$) (MCDN$)
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Total Proved
Reserves 141,408.2 69,458.0 11,073.9 12,717.3
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Total Proved
plus Probable 223,623.1 114,534.1 17,524.0 12,717.3
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Abandon- Future Net Future
ment and Revenue Net Revenue
Reclamation Before Income After Income
Costs Income Taxes Taxes Taxes
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(MCDN$) (MCDN$) (MCDN$) (MCDN$)
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Total Proved
Reserves 552.4 47,060.6 28,424.9 19,181.7
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Total Proved
plus Probable 614.8 78,232.9 44,958.2 33,274.7
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Note:
(1) Includes all Royalties, Supplemental Petroleum Tax (SPT) and Petroleum
Production Levy (PPL).


Additional information with respect to the Corporation's reserves is expected to be provided at the time the Corporation completes its year-end filings for the financial year ended December 31, 2010, which will be made available under the Corporation's profile on SEDAR.

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 $3.9MM and approximately 55.4 million common shares outstanding.

Barrel of Oil Equivalent: Where amounts are expressed on a barrel of oil equivalent ("BOE") is, natural gas volumes have been converted to BOE at a ratio of 6,000 cubic feet of natural gas to one barrel of oil equivalent. This conversion ratio is based upon an energy equivalent conversion method primarily applicable at the burner tip and does not represent value equivalence at the wellhead. BOE figures may be misleading, particularly if used in isolation.

Reserve Information: The aforementioned reserves information is based on an independent engineering evaluation report prepared by AJM Petroleum Consultants effective December 31, 2010.

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. Additionally, this press release contains statements of net present value - readers are cautioned the net present values of future net revenue do not represent fair market value. 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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