LONG BEACH, Calif., Dec. 2, 2004 (PRIMEZONE) -- Pacific Energy Resources Ltd. (TSX Venture Exchange:PFE) is pleased to announce the acquisition of PetroCal, Inc., a private corporation organized under the laws of the State of Delaware, U.S.A. with oil and gas operations in California. Pacific Energy will issue up to 40,000,000 common shares to the shareholders of PetroCal, Inc., and acquire the 75% interest in shared oil and gas leases in California, as well as a 100% interest in an additional oil and gas lease, also located in California. This acquisition will immediately add approximately 400 BOPD in production and increase overall quarterly revenues by US$1,500,000.00. Pacific Energy currently owns a 25% interest in these certain oil and gas leases located in California, U.S.A. This acquisition is subject to the approval of the TSX Venture Exchange and a majority of Pacific Energy's shareholders.
Pacific Energy has completed an independent Reserve Report performed by DeGolyer and MacNaughton, a leading internationally respected oil and gas consulting firm which integrates the disciplines of petroleum and reservoir engineering, geology, economics and management. Post acquisition Pacific Energy will hold a 100% interest in net proved developed producing reserves of 2.4 million barrels, proved developed non-producing reserves of 0.2 million barrels, and proved undeveloped reserves of 8.7 million barrels. This is an increase of 31.6% from the total net proved reserves reported in the July 2003 by DeGolyer and MacNaughton. This firm is independent of Pacific Energy Resources Ltd. The report is an evaluation of the company's reserves as of August 1, 2004
The net present value of these recoverable proved reserves is $94.2 million US, at a discounted rate of 10%. This constant price case analysis was estimated using guidelines established by the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB). Also, the reserve appraisal was prepared using reserves definitions consistent with those of the Canadian National Instrument 51-101.
In addition to the acquisition of PetroCal, Inc., Pacific Energy has also announced that it will discontinue business in the Province of British Columbia and domesticate into the State of Delaware, U.S.A. Pacific Energy's head office and business operations and all of its properties and property interests are located in the United States. Following the domestication and continuance, Pacific Energy will continue to be deemed to be a reporting issuer under the securities legislation applicable in each of the Canadian Provinces of British Columbia and Alberta. The domestication and continuance will not affect the listing of Pacific Energy's shares on the TSX Venture Exchange. The domestication and continuance is subject to the approval of Pacific Energy's shareholders, which is currently being sought by the company.
About Pacific Energy Resources Ltd.
Pacific Energy Resources, LTD is headquartered in Long Beach, California and is engaged in the acquisition and development of oil and gas properties, primarily in the United States. Pacific Energy currently owns and operates three oil fields in Southern California in the Los Angeles Basin. Additional information relating to Pacific Energy may be found on SEDAR at www.sedar.com.
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