Primera Gets Go Ahead for 25% Farm-In of Onshore Moruga Block
The board of directors of Primera Energy Resources Ltd. has provided an update on the farm-in on the Cory Moruga Block and other corporate matters.
Primera has received communication from the Ministry of Energy of Trinidad and Tobago for the approval of the farm-in for 25% of the onshore Moruga Block and for the assignment of such interest effective July 30, 2008. The assignment of the 25% of the Moruga Block is subject to final documentation in the ordinary course. In accordance with the transfer requirements, Primera has advanced its 25% share of the exploration and seismic costs to be held in trust pending closing of the assignment. This amount was a total of USD$2,413,320. On the Moruga Block, the approximate 85 sq km 3D seismic program has been shot and completed last December. Interpretation of the seismic data has commenced and the Corporation with its partner has begun planning for an exploration well on the Moruga Block.
The Moruga Block is located onshore in the south central area of Trinidad and is approximately 7,443 acres and is adjacent to infrastructure and existing producing pools, owned jointly by British Gas Trinidad and Tobago and Petrotrin.
Onshore on the 100% owned Block WD-4, the Corporation has sourced a drilling rig and intends to drill two replacement wells to commence in September, 2008. The Corporation is targeting a multi-zone oil development project.
The Corporation is also pleased to report that a total of 3,582,665 of the $0.30 purchase warrants were exercised resulting in total warrant proceeds of approximately $1,074,800 and a total of 149,773 of the $0.20 broker warrants were exercised for total proceeds of approximately $30,000. The remaining 12,417,335 of the $0.30 warrants and the remaining 227 of the Broker Warrants expired in July.
The Corporation now has 44,015,768 Common Shares outstanding, options to acquire 3,193,000 Common Shares outstanding and 7,500,000 warrants outstanding. Each Warrant is exercisable into one Common Share at a price of $0.20 until June 23, 2010 and at a price of $0.22 during the period between June 23, 2010 and June 23, 2011.