Primera Energy Resources Ltd.
TSX VENTURE : PTT

June 24, 2008 09:00 ET

Primera Energy Resources Ltd. (TSXV:PTT) Announces the Completion of Unit Private Placement

PORT OF SPAIN, TRINIDAD & TOBAGO AND CALGARY, ALBERTA--(Marketwire - June 24, 2008) - Further to a press release dated April 30, 2008 the board of directors of Primera Energy Resources Ltd. ("Primera" or the "Corporation") (TSX VENTURE:PTT) is pleased to announce that the Corporation has completed the closing of a non-brokered private placement of 7,500,000 units (the "Units") at a price of $0.20 per Unit for gross proceeds of $1,500,000 (collectively the "Offering"). Each Unit consisted of one common share ("Share") and one Share purchase warrant ("Warrant"). Each Warrant is exercisable into one Share at a price of $0.20 until June 23, 2010 and at a price of $0.22 during the period between June 23, 2010 and June 23, 2011 (collectively the "Exercise Price"). All of the securities issued in connection with the private placement are subject to a four-month hold period (until October 24, 2008). Proceeds of the private placement will be used for the exploration and development of hydrocarbons and associated general and administrative expenses.

After giving effect to the Offering, the Corporation has 40,505,093 Shares issued and outstanding.

Primera Block WD-4 Limited ("WD-4"), a company controlled by C L Financial Ltd. and an Insider of the Corporation, acquired 3,750,000 Units pursuant to the Offering. As a result of the Offering, WD-4 now owns or controls 23,750,000 Shares of the Corporation (58.7%), and Warrants to acquire 6,000,000 Shares at an exercise price of $.30 and 3,750,000 Shares at the Exercise Price. Assuming exercise of such Warrants, WD-4 would hold or control 66.7% of the issued and outstanding Shares of the Corporation.

Philip E. Collins, President and a director of the Corporation, together with his spouse, acquired 2,000,000 Units pursuant to the Offering. As a result of the Offering, Philip E. Collins, and his spouse, now own or control 2,000,000 Shares (4.9%), and options to acquire 500,000 Shares at a price of $0.20 per Share and Warrants to acquire 2,000,000 Shares at the Exercise Price. Assuming exercise of such options and Warrants, Philip E. Collins would hold or control 4,500,000 Shares (10.7%) of the issued and outstanding Shares of the Corporation.

READER ADVISORY

Statements in this press release may contain forward-looking information including expectations of future production, 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 company. 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 exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, 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.

The reader is further cautioned that the preparation of financial statements in accordance with generally accepted accounting principles requires management to make certain judgements and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Estimating reserves is also critical to several accounting estimates and requires judgments and decisions based upon available geological, geophysical, engineering and economic data. These estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes.

The calculations of barrels of oil equivalent ("boe") are based on a conversion rate of six thousand cubic feet ("mcf") of natural gas to one barrel of crude oil. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Primera Energy Resources Ltd.
    Patrick Acham
    Chief Executive Officer
    (868) 677-7253
    or
    Primera Energy Resources Ltd.
    Philip E. Collins
    President
    (403) 630-2024