Pearl is a Canadian-based oil and gas company whose common shares are traded on the TSX Venture Exchange under the symbol "PXX" and on the First North, (OMX Nordic Exchange) under the symbol "PXXS". Pearl currently holds various interests in oil and gas exploration and development properties in Canada and the U.S. that were obtained through six corporate and four working interest acquisitions since November 2005.
Pearl is assembling properties with large resource size potential and high working interests. Stable production from low risk Canadian properties is being developed. The 2007 work program is focusing on investments in core conventional heavy oil production development projects such as Onion Lake (87.5% Working Interest) and Mooney (98.4% Working Interest) in order to both appraise and develop reserves.
To increase heavy oil recoveries, steam pilot operations commenced in 2006 at San Miguel (50% Working Interest) in Texas and are scheduled to begin at Onion Lake in late 2007. Steam operations are in the planning stage for a SAGD pilot at Blackrod (35% Working Interest). By using steam, recoveries can be increased from approximately 2-10% (cold conventional production) to 25-50%.
At the Palo Duro Shale Gas Exploration Project (30% Working Interest) in Texas , two MacIntosh wells drilled during the past year will be tied-in and undergo extended production testing.
Over the past two years, Pearl has increased production from zero to 10,500 Boepd (August 31, 2007), with more than half through the drill bit. Reserves during the same period have grown from zero to over 13 MMBoe 1P, 33 MMBoe 2P and 147 MMBoe 3P reserves.
Pearl has a 33% membership interest in Rincon Energy Partners, LLC. The Company's investment in Rincon Energy Partners, a U.S. based oil and gas prospect generation company specializing in Gulf Coast and California oil and gas exploration, gives Pearl Exploration and Production the right to participate in prospects generated and also benefit from any royalties, prospect fees and back-in interests. These interests include: the Topanga oil discovery, California ; and the EC 111 license, offshore Louisiana (e.g. Rincon has a 2.5% overriding royalty interest in production from the EC 111 gas discovery made in the second quarter of 2005 by Cabot Oil and Gas Corp.).