PEARL CORPORATE UPDATE
CALGARY, ALBERTA - Pearl Exploration and
Production Ltd.
("Pearl" or the "Company") (TSX Venture: PXX and First
North: PXXS) reports that it has entered into a binding agreement with a large
integrated energy company to sell certain non-core heavy oil producing assets
for $75 million.
These assets, principally located in the Lloydminster, Celtic, Pikes Peak
and Thunderchild areas of Saskatchewan, currently produce
approximately 3,200 Boe/d and are part of the
non-core asset package that the Company had announced its intentions to
investigate selling on January 8, 2008.
“We are very pleased with the outcome of
this non-core asset rationalization effort. While these assets make up
approximately 30% of our current production and cash flow they are only 10% of
our proved plus probable reserves and 3% of our proved plus probable plus possible
reserves. By disposing of these assets we will be better able to
concentrate on our larger resource to reserve conversion opportunities both in
terms of capital and in terms of human resources. In addition this sale
will allow Pearl
to eliminate its current debt balance of approximately $30 mm, stated Keith Hill, President and CEO of Pearl.
The sale is expected to close prior to the end
of May. Canaccord Enermarket
acted as exclusive financial advisor to Pearl
in this disposition.
Pearl Exploration and Production Ltd. is a
public company focused on delivering disciplined 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.
For further information, please
contact:
Keith Hill - President and
Chief Executive Officer
Tel.:
(604) 689-7842
E-mail:
khill@namdo.com
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Randy Neely – Chief
Financial Officer
Tel: (403) 716-4054
E-mail: randy.neely@pxx.ca
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Sophia Shane – Corporate
Development
Tel:
(604) 806-3575
E-mail:
sophias@namdo.com
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Pearl’s Certified
Advisor on First North is E.
�hman 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.