| |
| |
| | | |
| | | |||
|
| | President's Message 2008 Third Quarter The third quarter of 2008 represented a major shift in the market conditions impacting the business model of the Company. July saw the highest wellhead pricing and wellhead netbacks in our history, $94.01 and $53.08 respectively which declined throughout the period to an average of $71.32 and $32.90 in September. These values have continued to decline into the fourth quarter as overall market conditions also continued to deteriorate. This fall was partially offset by a historic weakening of the Canadian dollar which fell from approximately par at the beginning of July to under $0.80 at times during October. As essentially all of our product sales trade in reference to US dollars, a falling Canadian dollar helps mitigate the impact of falling oil and natural gas prices as the majority of our costs are in Canadian dollars. While our long term outlook on commodity prices and in particular heavy oil prices remains highly positive, we have adjusted our budget and financial outlooks to reflect the difficult pricing environment we are currently experiencing. (more...) 2008 Second Quarter The second quarter of 2008 was the best financial and operational quarter in the Company's history. Primarily due to substantially higher oil and gas prices realized in the second quarter and the sale of non-core assets, the Company posted its highest profit and cash flow numbers to date of $6.7 million and $28 million respectively. Combining this financial performance with the closing of the sale of the non-core assets in North Central Saskatchewan, the Company is in a very strong financial position with over $52 million in positive working capital after deducting long term debt at the end of the second quarter. Second quarter realized well-head pricing averaged $84.57 per barrel for our heavy oil and 9.80/Mcf for gas resulting in wellhead netbacks of $43.21/Boe. (more...) 2008 First Quarter Pearl is off to a strong start in 2008. Heavy oil continues to gain a much greater position in the world energy market and the light-to-heavy oil price differential previously seen continues to narrow with heavy oil rapidly gaining ground. As a result Pearl achieved a cash flow in the first quarter of just under $20 million which is almost equal to its entire cash flow from 2007. The Company has ramped up its efforts on its steam pilot projects in the U.S. and Canada with the objective of converting our captured large-scale resources into proved and probable reserves. In San Miguel we completed the conversion of the Chittam pilot to a SAGD pilot, took delivery of a second 25 MMBtu steam generator, completed the drilling of the five spot fractured assisted steam technology ("FAST") pilot on the Saner ranch lease and began the development of the horizontal FAST scheme pilot on the Saner lease as well. In our Mooney field we drilled one successful well that tested at 230 Bbl/d and is awaiting tie-in and have been making progress on the planning and development of a polymer based flood. In Blackrod we are planning to drill a core well and have continued to make progress on the SAGD pilot application and expect to submit it in the second quarter. At Onion Lake, the 25 MMBtu steam generator was installed and commissioned with steam going into the ground in May All of these efforts are focused on our goal of converting our resources to reserves which we believe will add considerable dollar value per barrel of oil in the ground and, coupled with the current long-term bull market in oil, will create enormous shareholder value. (more...) 2007 Annual Report Unlocking the value of heavy oil is what Pearl is all about - since the day of inception. Heavy oil will be playing an ever increasing role in world oil consumption as new sources of light crude become more and more elusive. Global energy demand will persistently push the limits of available supply. Diminishing availability of conventional oil and high prices will drive improved technology, refining capacity and infrastructure to recover and process heavy oil. Recognizing this as a largely overlooked opportunity, Pearl has been on a mission to accumulate heavy oil assets and has built a portfolio of quality projects. The emphasis is on large resource upside potential while achieving a balance of low-risk development. The focus is in North America where much of the world's quality heavy oil resources lay and offer the most value due to proximity to markets. The untapped potential in North America is huge and Pearl is positioning itself to take full advantage. (more...) 2007 Fourth Quarter The third quarter of 2007 has been the busiest and most productive in Pearl's brief history. We set new production and drilling records while acquiring four new heavy oil opportunities in Canada and the United States. This demonstrates our two-tier approach to building Company value by acquiring low cost, large-scale heavy oil resources by upgrading those resources into reserves and building stable production and cash flow. We believe that the conversion of captured heavy oil resources into Proven and Probable reserves is the most important value driver and we therefore have ongoing appraisal and development projects designed to accomplish this goal in the shortest time frame possible. (more...) 2007 Third Quarter The second quarter of calendar 2007 saw the Company continue with its stated goals of building a strong base of production and cash flow from its core properties in western Canada while pursuing high upside potential through steam pilot projects and acquisitions. Despite challenges from extreme cold weather in the first quarter and anomalously high rainfall in the second quarter, the Company was able to increase production levels by 14% (6,966 to 7,910 boepd) and revenues by 21% ($19.4 million to $23.5 million) during the quarter. These gains are expected to increase and continue throughout the remainder of 2007. (more...) 2007 Second Quarter To our shareholders: The first quarter of 2007 has seen Pearl Exploration and Production Ltd. ("Pearl" or "the Company") move from an emphasis on acquisitions to a development mode. After acquiring five companies in less than 18 months, the focus is now on drilling wells on the acquired properties to increase production, cash flow and reserves. Management believes that the 2007 development program will maximize the returns on shareholder equity. A total budget of $193 million was approved by the Board of Directors for 2007 which includes drilling 210 wells. These wells are primarily located on the low risk development properties in western Canada with over 70% of the budget earmarked for the Onion Lake and Mooney fields. In the first quarter of 2007, we were able to drill 68 wells which puts us on track to achieve our drilling goals prior to year end. On the Onion Lake lands, we were able to drill 25 wells prior to spring break-up. Heavy oil field development is characterized by large drilling programs and we continue to pursue optimization of drilling time and costs which is key to making these fields profitable. Drilling times at Onion Lake have been reduced to less than three days per well. (more...) 2007 First Quarter Report To our shareholders: I am pleased to be writing my first letter to shareholders as President and CEO of Pearl Exploration and Production Ltd. This is an exciting time for Pearl, and the growth potential of the portfolio we have assembled is now beginning to be translated into tangible increases in production, cash flow and reserves. We have a portfolio of drilling locations to which much of the recent C$111 million in financing will be directed towards. Over 200 wells are expected to be drilled in the coming year. These wells will increase our production, improve operating margins, and enable the large assembled resource base to be converted into proven, probable and possible reserves. (more...) 2006 Annual Report To our shareholders: 2006 was a year of significant, rapid growth for Pearl Exploration and Production Ltd. (the "Company" or "Pearl"). Through several major acquisitions, the Company has built a solid foundation of oil and gas assets with significant upside potential. The diversified oil and gas portfolio that has been assembled can be summarized as follows:
| | |
| | | |||
| | |
| |  | | Home Investors Operations News Contact Careers Disclaimer | |