Pearl Exploration and Production Ltd.



News Releases

Show printable version of this news release in a New Window Email this news release to a friend
  Feb 25, 2008 - 09:30 ET
Pearl Announces Filing of Reserves Report and Contingent Resource Assessments

 

CALGARY, ALBERTA--(Marketwire - Feb. 25, 2008) - Pearl Exploration and Production Ltd. ("Pearl" or the "Company") (TSX VENTURE:PXX)(FIRST NORTH:PXXS) is pleased to announce that it has filed a reserves report for the period ended December 31, 2007 as evaluated by DeGolyer and MacNaughton Canada Ltd. ("D&M") and prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.

This report documents the results achieved by the company's activities previously reported throughout 2007 such as its ongoing development drilling programs and corporate acquisitions.

Pearl President and CEO Keith Hill commented, "We are pleased and encouraged by the reserve increases in all categories. Over the past year, we have increased our Proved Reserves by 90%, our Probable Reserves by 89% and our Possible Reserves by over 500%. The combined increase in our total Proved plus Probable plus Possible Reserves from 50.7 to 194.9 MMboe is consistent with our strategy of growing the resource base of the company. This reserve growth positions us well to take advantage of the current strong developing market for heavy oil."

The Reserves report and Contingent Resource reports will be available at www.sedar.com and on Pearl's website at www.pearleandp.com.

RESERVES REPORT

Based on reserves reports prepared by D&M, using forecast prices and costs, Pearl's Gross Reserves for 2007 as compared to the previous year are as follows. Gross Reserves are Pearl's working interest share (operating or non-operating) before deducting royalties.


                                                                      Year
                                                                      over
                                  December 31        December 31      Year
VOLUMES                                  2006               2007  Increase
Reserves Category                       (Mboe)             (Mboe)       (%)
-------------------------    ---------------------------------------------
Proved Reserves (1)                    11,909             22,574        90%
Probable Reserves (2)                  15,216             28,755        89%
Possible Reserves (3)                  23,568            143,586       509%
Cumulative
-------------------------
Proved plus Probable
 Reserves                              27,125             51,329        89%
Proved plus Probable plus
 Possible Reserves                     50,693            194,915       285%

                                                                      Year
                                                                      over
                                  December 31        December 31      Year
VALUES                                   2006               2007  Increase
Reserves Category           (NPV10 (4) M$, BT) (NPV10 (4) M$, BT)       (%)
-------------------------    ---------------------------------------------
Proved Reserves (1)                   141,689            203,173        43%
Probable Reserves (2)                 147,064            218,073        48%
Possible Reserves (3)                 206,934            613,912       197%
Cumulative
-------------------------
Proved plus Probable
 Reserves                             288,753            421,246        46%
Proved plus Probable plus
 Possible Reserves                    495,687          1,035,158       109%
- The net present value of Pearl's Proved plus Probable reserves increased to $421.2 million, while the NPV of the total Proved reserves increased to $203.2 million. The NPV of the Proved plus Probable plus Possible reserves is $1,035.2 million;

 

- Acquisitions during 2007 accounted for Reserves additions totaling 2,356 Mboe Proved and 8,772 Mboe Proved plus Probable, and 131,687 Mboe Proved plus Probable plus Possible.

CONTINGENT RESOURCES

For several of its key properties, Pearl has had separate, individual Contingent Resource reports prepared by D&M. Contingent Resources are volumes estimated to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingent Resources therefore cannot be classified as reserves. The following are the Contingent Resources currently estimated for Pearl's key properties.


                         Contingent
                       Resources (5)
Key Properties                (Mboe)
-------------------    ------------
San Miguel                  197,162
Fiddler Creek                86,337
Onion Lake                   13,267
Palo Duro                    11,741
Fishing Lake                 10,120
Druid & Springwater           5,234
Mooney                        2,575
                       ------------
Total                       326,436
                       ------------

NOTES:

(1) Proved Reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

(2) Probable Reserves are those additional reserves that are less certain to be recovered than proven reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the proven plus probable reserves.

(3) Possible Reserves are those additional reserves that are less certain to be recovered than probable reserves. There is only a 10-percent probability that the quantities actually recovered will equal or exceed the sum of the proven plus probable plus possible reserves.

(4) The Net Present Value (NPV) based on D&M Forecast Pricing and costs, before taxes, discounted at 10%. The estimated NPV does not necessarily represent the fair market value of our reserves. There is no assurance that forecast prices and costs assumed in the D&M evaluations will be attained, and variances could be material.

(5) Contingent Resources have been prepared in accordance with the PRMS approved in March 2007 by the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists, and the Society of Petroleum Evaluation Engineers. Because of the lack of commerciality or sufficient development drilling, the Contingent Resources estimated herein cannot be classified as reserves.

Pearl Exploration and Production Ltd. is a public company focused on delivering growth by establishing a North American portfolio of heavy oil projects with an emphasis on large resource opportunities. Additional information on Pearl is available on the Company's website at www.pearleandp.com.

All references in this release to boe's are based on a 6 to 1 conversion ratio. Boe's may be misleading, particularly if used in isolation. A boe conversion 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.

Pearl's Certified Advisor on First North is E. Ohman J:or Fondkommission AB.

Forward-looking statements: This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.

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



FOR FURTHER INFORMATION PLEASE CONTACT:

Pearl Exploration and Production Ltd.
Keith Hill
President and Chief Executive Officer
(604) 689-7842
Email:
khill@namdo.com

or

Pearl Exploration and Production Ltd.
Randy Neely
Chief Financial Officer
(403) 716-4054
Email:
randy.neely@pxx.ca

or

Pearl Exploration and Production Ltd.
Sophia Shane
Corporate Development
(604) 806-3575
Email:
sophias@namdo.com
Website: www.pearleandp.com
 
 

You can return to the Top of this page




Adnet Communications Inc.