Primera Energy Resources Ltd.

July 26, 2011 09:15 ET

Primera Energy Resources Ltd. (TSX-V:PTT) Releases Q3 Financial Results and Announces Phase 2 of Its Current Drilling Program- 4 More Wells Expected by End of 2011

PORT OF SPAIN, TRINIDAD & TOBAGO AND CALGARY, ALBERTA--(Marketwire - July 26, 2011) - Primera Energy Resources Ltd. ("Primera" or the "Company") (TSX VENTURE:PTT) is pleased to announce a 21% increase in oil production in the first quarter of 2011 compared to Q1 last year. Also revenue was 44% higher in the first quarter increasing to $2,023,293 as oil prices also saw an increase of 19% to $85.78 per barrel in the period.

Operating costs per barrel stayed relatively steady at $6.32 per barrel compared to $6.20 in the comparable period last year. General and administrative (G&A) costs per barrel decreased to $8.87 per barrel from $9.59 for the first quarter last year as the Company continues to focus its efforts largely in Trinidad with attendant savings in G&A.

The provision for Depletion, depreciation and amortization (DD&A) decreased substantially to $151,072 or $6.37 per barrel compared to $171,129 or $11.54 per barrel in the first quarter last year. As the Company has now converted to the International Financial Reporting Standard this quarter the DD&A provision will now be calculated using prove and probable reserve s versus just the proved reserves in the past as the depleteable base the DD&A provision should continue to be lower than in the past under Canadian Generally Accounting Principles (Canadian GAAP).

The Company had a working capital surplus at the end of the quarter of $2,303,909 which included cash of $3,725,805 compared to working capital and cash of $2,999,876 and $4,355,577 respectively for the first quarter end last year.

The Company spent $641,242 on capital during the three month period ended March 31, 2011. Cost for Cory Moruga drilling and completions were $521,693 and drilling costs for the WD4 development property was $119,549 as the two well initial drilling program was just getting underway. The drilling of the two wells in WD4 was finished in the second quarter and completed and these wells were placed on production and producing approximately 450 barrels of oil per day.

At Cory Moruga the Firecrown -1 well was deepened to approximately 10,300 feet and with this operation the Ministry deemed that the earning requirements had been met under the license.

At Block WD-4 the company has commenced Phase 2 of its current drilling program which involves the drilling of 4 additional wells in the last quarter of this year. The Company anticipates that Phase 2 of this program shall substantially increase the oil production on this block.

Primera's Q1- 2011 financial statements and the management discussion and analysis (md&a) have been filed on SEDAR, which is accessed electronically from

Statements in this press release may contain forward looking-information including expectations of future operations and plans. 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 rates changes. Industry related risks could include, but are not limited to, operational risks in the 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 undue reliance on the forward-looking information.

Neither the TSX or the TSX-Venture Exchange or 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 the accuracy of this release.

Contact Information

  • Primera Energy Resources Ltd.
    Geoffrey Leid
    Chief Executive Officer

    Primera Energy Resources Ltd.
    Stephen Austin
    Chief Financial Officer
    (403) 532-5900