Nice call Riotact! Press Release BelowPrimera Energy Resources Ltd. (TSX-V:PTT) Releases Q3-2010 Financial Results
PORT OF SPAIN, TRINIDAD & TOBAGO and CALGARY, ALBERTA, Nov 25, 2010 (Marketwire via COMTEX News Network) --
PrimeraEnergy Resources Ltd. ("Primera" or the "Company") (TSX VENTURE:PTT) ispleased to announce a 26% increase in oil production per day in thethird quarter of 2010. Also, revenue was 29% higher for the nine monthperiod ended September 30, 2010 with $5,408,764 due to the increasedsales volumes and higher commodity prices.
In the third quarterof 2010, operating costs per barrel was $6.40 which was significantlylower than the $11.88 per barrel in 2009. This and the higher realizedoil price resulted in 34% higher cash flow from operations in the lastyear at $418,234 compared to $312,724 in the third quarter of 2009.
Primerahad a working capital surplus of $3,588,001 as of September 30, 2010,which included cash of $4,345,479 and no bank debt, compared to aworking capital surplus of $1,432,098 in the same period last year.
TheCompany has spent $2,063,581 during the nine-month period endedSeptember 30, 2010 on capital expenditures with $589,405 for Cory Morugadrilling costs based on the 5% participating interest in the farm outagreement and $1,474,176 on WD4 drilling costs compared to $360,426 in2009.
Completion operations for the two Cory Moruga wells(Firecrown-1 and Snowcap-1), which were drilled earlier in 2010, willcommence once regulatory approvals in Trinidad are received. TheSnowcap-1 well has now received environmental approval for multi-zonetesting. This well is expected to commence testing by the operator inearly December 2010 however the Firecrown-1 well is not expected to betested until early 2011.
In the Budget statement for fiscal year2011, the government of Trinidad & Tobago announced that theGovernment will implement sustainability incentives for mature marineand small marine oil fields. These incentives will provide for areduction of 20 percent on Supplemental Petroleum Tax rates for matureor small marine oilfields. An Investment Tax Credit of 20 percent onqualifying capital expenditure will also be granted in respect ofSupplemental Petroleum Tax for mature oil fields, both land and marine.These measures will take effect from January 1st 2011, and will requireamendments to the Petroleum Taxes Act.
Based on the incentivesstated above, Primera expects to achieve an approximate increase ofapproximately 16% on its netback, corresponding to an increase in netprofits of approximately US$ 120,000 annually at current productionlevels and commodity prices.
Primera's Q3-2010 financialstatements and management's discussion & analysis have been filed onSEDAR, which accessed electronically from www.sedar.com.
Statementsin this press release may contain forward-looking information includingexpectations of future operations and plans. The reader is cautionedthat assumptions used in the preparation of such information may proveto be incorrect. Events or circumstances may cause actual results todiffer materially from those predicted, a result of numerous known andunknown risks, uncertainties, and other factors, many of which arebeyond the control of the issuer. These risks include, but are notlimited to, the risks associated with the oil and gas industry,commodity prices and exchange rate changes. Industry related risks couldinclude, but are not limited to, operational risks in development andproduction, delays or changes in plans, risks associated to theuncertainty of reserve estimates, or reservoir performance, health andsafety risks and the uncertainty of estimates and projections ofproduction, costs and expenses. The reader is cautioned not to placeundue reliance on this forward-looking information.
SOURCE: Primera Energy Resources Ltd.
Primera Energy Resources Ltd. Geoffrey Leid Chief Executive Officer (868) 378-5343
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