Primera Energy Resources Ltd.
TSX VENTURE : PTT

May 29, 2009 10:16 ET

Primera Energy Resources Ltd. (TSXV:PTT) Files First Quarter Results and Updates Trading Status

PORT OF SPAIN, TRINIDAD & TOBAGO AND CALGARY, ALBERTA--(Marketwire - May 29, 2009) - Primera Energy Resources Ltd. ("Primera" or the "Corporation") (TSX VENTURE:PTT) announces that it has filed its quarterly Financials and Management Discussion and Analysis for the three months ended March 31, 2009.

Such filings can be accessed electronically from the SEDAR website at www.sedar.com.



HIGHLIGHTS:

Financial (quarter ended) March 31, 2009 March 31, 2008

Petroleum Sales $ 1,110,279 $ 1,542,733
Cash Flow from Operations (1) $ (31,455) $ 258,657
Per share - basic (0.001) 0.008
Per share - diluted (0.001) 0.005
Net Earnings (loss) $ (77,241) $ 154,775
Per share - basic (0.002) 0.005
Per share - diluted (0.002) 0.003
Capital Expenditures $ 54,998 $ 709

Working Capital Surplus $ 1,516,249 $ 2,302,080
Shareholder Equity $ 7,082,666 $ 4,511,465

Outstanding
Shares weighted average 44,015,768 32,984,093
Diluted 54,708,768 50,526,330

OPERATIONS SUMMARY:

Production
Oil (bopd) 259 210

Undeveloped land (acres)
Gross 9,363 0
Net 2,821 0


Production was increased by 23% due to well optimization and the drilling of 2 wells during the fourth quarter of 2008. The Corporation retains a strong working capital position of $1,516,249 and has no debt.

As at March 31, 2009 the Corporation had cash in the bank of $2,345,066.

(1) Primera's management uses certain non-GAAP measures such as cash flow from operations which excludes the changes in non-cash working capital.
Outlook and Update on Trading Halt and Potential Transaction

Primera is engaged in reviewing potential merger and acquisition candidates in Trinidad and Canada. Several candidates and proposals are currently being explored. No assurances can be given at this time that these discussions will lead to a business combination.

While crude prices have firmed over the latest few months, the Company is not expected to drill on the WD4 asset until possibly later this year. In the meantime, the Corporation will focus on completions and optimizing production levels while continuing to screen merger and acquisition candidates.

Significant progress has been made in evaluating the Cory Moruga Block 'E' (Primera 25% WI) in South Central Trinidad. The Corporation has completed the interpretation of the required 85 square miles of full-fold 3-D seismic over the block and several prospects have been mapped with 3-way closure. The initial exploration location ("Green Hermit") has been identified. A data room has been opened and several candidates that have expressed interest have signed confidentialities and are in the process of analyzing the geophysical and geological data. The Block lies adjacent and on trend with a significant gas and condensate discovery in the Herrera Sands made by Aventura (Vermillion) in the Central Block in 2000. This discovery tested five separate intervals with a combined daily rate in excess of 60 million cubic feet of gas and approximately 2,000 barrels of condensate (see www.epmag.com/archives/worldMap/3177, energy.ihs.com/News/WW-News/news-2007/BG-tests-gas-in-Baraka-East-1-outpost-Trinidad-and-Tobago). The Cory Moruga Block 'E' is surrounded on all sides by production from the Herrera aged sands; this coupled with the proprietary 3-D seismic interpretation, positions Primera and its partner for a potentially significant discovery. Efforts are being made to survey and prepare a location for the Cory Moruga Block 'E' "Green Hermit" prospect.

As information of a material nature in either acquisitions, mergers or in terms of a potential partner develops for the Cory block, appropriate disclosures will be forthcoming.

In terms of the voluntary halt in the stock, the Corporation was involved in negotiations with a third party of a material nature. These assets would add materially to our Trinidad reserve base. In the Fall of 2008, equity markets were extremely challenged in the turmoil of the world financial credit crisis. The Corporation re-considered the merger and acquisition plans on how to finance the transaction(s) and made several proposals. These proposals are under consideration but no certainty can be given at this time that a proposal will be acceptable. Therefore, the Corporation has determined that, in these circumstances the stock should return to full trading status upon the release of the first quarter financials.

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 Corporation. 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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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
    Managing Director, Geology and Exploration,
    Western Canadian Sedimentary Basin
    (403) 532-5900
    or
    Primera Energy Resources Ltd.
    Gordon Harris
    Managing Director, Mergers and Acquisitions and
    Business Development
    (403) 532-5900