Primera Energy Resources Ltd.
TSX VENTURE : PTT

June 03, 2009 09:46 ET

Primera Energy Resources Ltd. (TSXV:PTT) Updates Trading Status

TRINIDAD & TOBAGO AND CALGARY, ALBERTA--(Marketwire - June 3, 2009) - Primera Energy Resources Ltd. ("Primera" or the "Corporation") (TSX VENTURE:PTT) is pleased to announce that its voluntary halt of trading will be lifted and trading will commence on June 3, 2009. The voluntary halt was imposed at the request of the Corporation in September 2008 in accordance with TSX Venture Exchange Policies due to the Corporation being in advanced negotiations for a reviewable transaction. Due to financial market conditions, commodity prices and internal events with the vendor of the assets proposed to be purchased this transaction is not proceeding at this time.

The TSX Venture Exchange has also granted final approval for the acquisition of a 25% working interest in the Cory Moruga Block 'E' onshore in South Central Trinidad and has designated the Corporation as a Tier 1 Issuer pursuant to the Policies of the TSX Venture Exchange.

Significant progress has been made in evaluating the Cory Moruga Block 'E' (Primera 25% WI) in South Central Trinidad. This is a high impact prospect that is jointly owned by Primera Oil and Gas Limited (75% WI) a private Trinidad company which is affiliated with the Corporation.

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.

The Corporation currently produces approximately 254 barrels of oil per day pursuant to a lease operatorship in South Central Trinidad, has a 25% entitlement to the Cory Moruga Block "E' and a 10% entitlement to a Production Sharing Contract for onshore India block CB-ONN-2005/11 (this interest is carried for the first 12 months). The Corporation also holds a 50% working interest in three sections of land in the Windfall area of west central Alberta, Canada. The prospect is a resource play targeting liquid rich gas that has significant potential and regional implications in the area for the Corporation.

The Corporation has an approximate working capital surplus of $1,516,249 as at March 31, 2009 and approximately 44,015,768 common shares outstanding. As a result of the designation of the Corporation as a Tier 1 Issuer pursuant to the Policies of the TSX Venture Exchange a total of 4,585,000 Common Shares will be released from escrow by the Transfer Agent in accordance with escrow agreements dated January 11, 2007 and September 19, 2005.

Readers are directed to the interim financial statements for the period ended March 31, 2009, annual financials statements and the Annual Information Form of the Corporation for the year ended December 31, 2008 filed on www.sedar.com.

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