PEARL CLOSES ACQUISITION
OF ADDITIONAL INTEREST IN
PRODUCING MOONEY OIL FIELD IN NORTHERN ALBERTA
CALGARY, ALBERTA -
Pearl Exploration and Production Ltd. ("Pearl" or the
"Company") (TSX Venture: PXX and First North: PXXS) is pleased to
announce that it has completed the acquisition of a 24% working interest in the
Mooney oil field from Ravenwood Energy Corp. (“Ravenwood”), a private oil and gas company. Pearl is the operator of the Mooney field, situated in
northern Alberta, and the acquisition of Ravenwood’s working interest brings Pearl’s working interest in the field
to 98.1% and immediately adds approximately 625 boepd
in current production.
Pearl acquired Ravenwood’s working interest, effective as at July 1,
2007, for the sum of Cdn $20,000,000, subject to
industry standard adjustments. 50% of the net purchase price was paid in
cash and 50% was paid by the issuance of 1,475,108 Pearl
common shares at a deemed price of Cdn $5.12 per
share (closing trading price as of July 13, 2007 on the TSX Venture Exchange).
Located in north-central Alberta, the
Mooney field is one of Pearl’s
best performing assets. Mooney is a conventional heavy oil field which
produces from the Bluesky sand formation. A high
recovery factor is expected due to the combination of relatively low viscosity
16 degree API gravity oil and favourable reservoir characteristics which
facilitates efficient oil flow. Pearl has mapped the potential area of the Mooney Bluesky heavy oil pool at approximately 50 sections, and a stratigraphic well program is ongoing to further delineate
the field’s areal extent.
The reservoir properties and the high quality oil also make the pool
conducive to water flooding which is expected to further enhance recovery. A
preliminary water flood simulation study showing higher secondary recoveries
has been prepared by independent reservoir engineering consultants. Pearl commenced water
flooding this pool in July 2006 after converting the original horizontal oil
well in the pool to a water injector with current injection rates at
approximately 1,200 barrels per day. A positive response to this water
injection was observed in the two offsetting oil producers and an expansion of
the water flood project area is planned in 2007.
Pearl is a public
company focused on delivering disciplined growth by establishing a North
American portfolio of oil and gas projects with an emphasis on large resource
opportunities. Additional information on Pearl is available on our website at www.pearleandp.com.
The company’s Certified
Advisor on First North is E. �hman J:or Fondkommission AB.
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
For further
information, please contact:
Keith Hill - President and
Chief Executive Officer
Tel.:
(604) 689-7842
Fax:
(604) 689-4250
E-mail:
khill@namdo.com
|
Arlene Weatherdon
- Chief Financial
Officer
Tel.:
(403) 716-4054
Fax:
(403) 265-8324
E-mail:
arlene.weatherdon@pxx.ca
|
Sophia Shane – Corporate
Development
Tel.: (604) 689-7842
Fax: (604) 689-4250
E-mail:
sophias@namdo.com
|
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