Parex Resources Inc T.PXT

News out - Snowcap-1 testing

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Primera Energy Resources Ltd. (TSX-V:PTT) Announces First Trinidad Onshore Light Oil Discovery in 50 Years and Test Results for Cory Moruga Snowcap-1 Well and Drilling Plans for Block WD-4
PORT OF SPAIN, TRINIDAD & TOBAGO and CALGARY, ALBERTA, Feb 15, 2011 (Marketwire via COMTEX News Network) --
Primera Energy Resources Ltd. ("Primera or the "Corporation") (TSX VENTURE:PTT) is pleased to provide the following corporate update.
Cory Moruga Block
Completion testing of Snowcap-1, the second exploration well drilled on the block is substantially complete. This well was designed to assess and evaluate the production potential of three (3) different play types, namely the Eocene, Footwall Herrera and Hanging wall Herrera zones. Following drilling to TD of 8,600 ft, four (4) potentially productive zones were tested. The primary zone of interest (Hanging wall) in the Herrera Formation was selectively perforated at 4,597 ft to 4,603 ft and tested initial rates up to 1,450 bopd and gas at rates up to 6.2 MMcf/d. The zone was then flow tested over a six (6) day period on a three-point test, producing 37 degree API gravity oil at a rate stabilizing around 578 barrels per day and a gas rate of 4.6 MMcf/d (total of 1,345 barrel of oil equivalent per day at a 6:1 conversion). Tubing Head Pressure at the end of the test was 600 psi. The zone produced no water on the test. Deeper secondary targets, namely the Eocene and Footwall Herrera zones produced little or no hydrocarbons in commercial quantities.
The Corporation views these results as very significant as the first well tested in the exploration program. Follow up appraisal well(s) are required to determine the Hanging wall Herrera reservoir areal extent, oil leg, gas cap structural positions and potential hydrocarbon height.
The Corporation will be meeting with the Operator under the Joint Operating Agreement to determine the next steps to get this well on stream and to do follow up drilling.
Parex Resources (Trinidad) Ltd., ("Parex") the Operator of the Cory Moruga Block under the Farmout Agreement, is mobilizing a drilling rig back to the Firecrown-1 location. As reported earlier, based on open-hole wireline logs, mud logs and cutting samples, this well encountered hydrocarbon bearing sandstones with oil shows from measured depths of approximately 6,600 ft to 7,200 ft and 8,150 ft to 8,275 ft in the Herrera Formation. Drilling was suspended due to well bore integrity problems. The well will be deepened to the commitment depth of 10,500 ft to investigate deeper prospective horizons, following which all potentially productive zones will be tested including the Herrera Formation.
In addition to the Snowcap-1 discovery and Firecrown-1 pending operations, the Corporation has several additional "high impact" prospects that have been seismically identified on the block and regulatory approval is being sought to conduct future exploration drilling.
The Corporation has a 16.2% working interest in the block (post earning).
Block WD-4
With the recent tax incentives to Primera's fiscal regime for drilling becoming effective January 1st 2011, Primera is mobilizing to resume its drilling program for the WD-4 block. These recent revisions to fiscal regime will improve profitability of block.
The Company is currently sourcing a drilling rig to commence its 2011 drilling campaign, having received the necessary regulatory approvals. The first well to be drilled, PS 131 RD will target the prolific Lower Forest formation and will be drilled to a total depth of 5600 feet.
Primera has identified 12 sites for their present drilling program and is continuing with its reservoir characterization study which is aimed primarily at identifying additional drilling opportunities on the block.
A barrel of oil equivalent (boe) is derived by converting gas to oil in the ratio of six thousand cubic feet of gas to oil and may be misleading, particularly if used in isolation. A boe conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead, especially in various international jurisdictions.
About PERL
PERL is a TSX Venture Exchange listed issuer which currently produces approximately 275 barrels of oil per day pursuant to a lease operatorship in South Central Trinidad, has a 16.2% entitlement to the Cory Moruga Block and a 10% entitlement to a Production Sharing Contract for onshore India block CB-ONN-2005/11. The prospect has significant potential and regional implications for PERL.
PERL currently has an approximate working capital surplus of $3.9MM and approximately 55.4 million common shares outstanding.
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 issuer. 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.
SOURCE: Primera Energy Resources Ltd.

Primera Energy Resources Ltd:
Phil Collins
Managing Director
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Primera Energy Resources Ltd:
Pat Acham
Director
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Primera Energy Resources Ltd:
Dan Patience
Investor Relations
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