Primera Energy Resources Ltd.
TSX VENTURE : PTT

November 29, 2011 09:52 ET

Primera Energy Resources Ltd. (TSX-V:PTT) Releases Q3 Financial Results- Record Third Quarter

PORT OF SPAIN, TRINIDAD & TOBAGO and CALGARY, ALBERTA--(Marketwire - Nov. 29, 2011) -

Primera Energy Resources Ltd. (TSX VENTURE:PTT) ("Primera" or the "Company") is pleased to announce a 34% increase in oil production to 410 barrels of oil per day in the third quarter of 2011 compared to Q3 last year. Also revenue was 67% higher in the third quarter this year increasing to $3,348,920 compared to $2,004,770 in the third quarter last year Oil prices were also up 25% compared to Q3 last year increasing to $88.70 per barrel compared to $70.98 in q3 last year.

Operating costs per barrel decreased to $6.11 per barrel for the quarter compared to $6.41 per barrel in the comparable period last year. The overall operating costs increased slightly by $49,710 to $230,642 from $180,933 reflecting increased field efficiencies in spite of higher volumes being produced.

The provision for Depletion, depreciation and amortization (DD&A) increased slightly on a per barrel basis to $$7.07 from $6.86 in Q3 last year.

The Company in Q3 had earnings before income taxes for the quarter of $1,490,623 versus earnings before income taxes in the third quarter last year of $318,885 reflecting the higher revenues and lower royalties after giving effect to the receipt of drilling credits which reduced the Supplementary Petroleum Tax in the quarter as well as reduced operating costs and depletion charges in Q3 this year compared to last year.

The Company had EBITDA (Earnings before interest, taxes and depreciation and amortization) of $1,757,425 ($.031 per share) compared to $513,625 in the third quarter last year. Fro the year to date the Company had $3,369,776 in EBITDA or $.06 per share compared to $1,207,079 ($.02 per share) last year.

The Company had a working capital surplus at the end of the third quarter of $1,856,342 which included cash of $3,915,575 compared to working capital and cash of $2,999.876 and $4,355,577 respectively as at December 31, 2010.

The Company spent $606,330 on capital during the three month period ended September 30, 2011. Costs for Cory Moruga drilling and completions were $212,408 and drilling and completion costs for the WD4 development was $393,922 for the two well drilling program. Year to date the Company has spent $2,447,974 on capital expenditures.

WD4 2011 drilling program

The 2011 drilling program which commenced late in Q1 has shown very encouraging results. The first of these was put on pump in late May 2011 at 84 barrels of oil per day and at present is still producing 79 barrels of oil per day. The second well in the 2011 program came on stream in early June 2011 and tested over 200 barrels of oil per day and was put on pump in late July 2011 at 75 barrels of oil per day with virtually no water associated with this production. The third well in this year's program was spudded in September drilled completed and put on-stream in November at 75 bopd. The fourth well in the program was drilled to a depth of 6,900 feet and is currently being completed and is expected to be on-stream in December 2011.

Oil production volumes for the month of September exceeded of 400 barrels of oil per day which were in large part responsible for the excellent quarter ended September 30, 2011.

Cory Moruga

The exploration program in Cory Moruga which commenced in early 2010 with the drilling and completions of the Firecrown 1 and Snowcap 1 wells is expected to continue in late 2011 or early 2102 with the planned drilling of the Green Hermit exploration test, Snowcap appraisal well and side tracking of Firecrown 1. These wells will further define the Cory Moruga potential and a development and appraisal well program will follow looking toward commercializing these three early stage projects.

Primera's Q3-2011 financial statements and the management discussion and analysis (md&a) have been filed on SEDAR, Which is accessed electronically from www.sedar.com.

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
    (868) 378-5343

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