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News Releases
| | September 14, 2006
Onion Lake Land Dispute Resolved Pearl Proceeding with Drilling
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| | CALGARY, ALBERTA - Pearl Exploration and Production Ltd. ("Pearl" or the "Company") (TSX Venture: PXX) is pleased to announce that its land dispute with the Onion Lake First Nation ("OLFN") of Saskatchewan/Alberta has been resolved.
Negotiations have resulted in the parties signing a Letter Agreement in respect of their settlement that outlines commitments and undertakings of the parties. The parties will now enter into more detailed, final agreements that will be executed by all parties in mid to late September 2006, subject to Indian Oil and Gas Canada approval. The successful negotiations have resulted in additional lands becoming available and additional drilling opportunities for the Company.
Pearl is continuing with its planned development drilling program along a Dina heavy oil trend, initially announced on March 14, 2006. With planning and procurement activities complete, the first well in a multiwell development drilling program is expected to begin drilling in September 2006. An aggressive multi-phase development drilling program is scheduled for the project. The first phase will comprise 45 to 55 wells utilizing 2 drill rigs. Each well is expected to take approximately 3 days to drill. Typical wells in the area average about 60 bopd per well following a clean up period. With the OLFN's cooperation Pearl is expecting to have new wells on production over the fall and winter.
Gary Guidry, President and C.E.O. of Pearl, commented, "We are pleased that we have come to an amicable settlement with the Onion Lake Band which we believe will be of great benefit to both parties. We can now proceed aggressively with our planned development program and expect Onion Lake to provide a solid, steady base of production and cash flow to the Company. We look forward to working with the Onion Lake Band in the future to move this project forward."
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.
For further information, please contact:
Gary Guidry - President and Chief Executive Officer
Tel.: (403) 716-4051
Fax: (403) 261-1007
E-mail: gary.guidry@tykoil.com
Gary Hyde - Chief Operating Officer
Tel: (403) 716-4063
Fax: (403) 261-1007
Email: gary.hyde@tykoil.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. |
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