PXX Pearl Exploration And Production LT Com Npv

Pearl Exploration and Production Ltd. ("Pearl" or the "Company") (TSX
VENTURE:PXX)(FIRST NORTH:PXXS) announces that in conjunction with its Joint
Venture partner, Serrano Energy Ltd. ("Serrano"), the Company has acquired a 35%
working interest in 2,816 contiguous hectares of oil sands leases located south
of Fort McMurray, in the Athabasca Oil Sands region of northern Alberta. The
Athabasca Oil Sands comprise what is considered one of the largest oil deposits
in the world and is the heart of Canada's oil industry. 


DeGolyer and MacNaughton Canada Limited, independent reserves evaluator,
prepared a report in accordance with National Instrument 51-101 guidelines on
these Alberta oil sand leases with an effective date of December 31, 2006. In
this report DeGolyer and MacNaughton estimated that Pearl's working interest
share of possible oil reserves within these leases was approximately 88 million
barrels of possible recoverable oil reserves, effectively tripling Pearl's
possible reserves. The 10% discounted value for these newly acquired reserves is
approximately CAD$105,000,000 (net to Pearl) using forecast pricing and before
taxes. 


Through its 28.27% ownership in Serrano, Pearl has an additional indirect
ownership of 24.8 million barrels of possible oil reserves and an additional 10%
discounted value for these reserves of approximately $29,683,500.


The Company has plans to drill one appraisal well this winter and is in the
process of preparing an application for required governmental approvals of a
thermal pilot project utilizing SAGD technology. Upon confirmation of positive
results from this appraisal well, Serrano as operator plans to initiate the SAGD
single well pair pilot project commencing in the fall of 2008, pending
regulatory approvals. Estimated drilling and facility costs of the SAGD pilot
project are estimated to be $15,000,000 ($5,250,000 net to Pearl).


For the balance of 2007 Pearl and Serrano have plans to drill up to 50
additional wells in their Joint Venture heavy oil conventional focus area in
Saskatchewan, commencing in early September. 


Pearl President and CEO Keith Hill stated, "We are very pleased to add this
large scale heavy oil property to Pearl's portfolio as a result of our
investment in Serrano. We will aggressively pursue the SAGD pilot project which
is the key to moving the possible reserve numbers into a proven and probable
category."


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.


The company's Certified Advisor on First North is E. Ohman J:or Fondkommission AB.

All references in this release to boe's are based on a 6 to 1 conversion ratio.
Boe's may be misleading, particularly if used in isolation. A boe conversion of
6 Mcf:1 bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead.


Significant Assumptions and Uncertainties:

The preceding information presents values that are estimated for possible
reserves (as defined in the Canadian Oil and Gas Evaluation Handbook) using
costs and prices in C$ obtained from sources considered to be reasonable by the
Corporation and the reserves evaluator, DeGolyer and MacNaughton.


Possible reserves are those additional reserves that are less certain to be
recovered than probable reserves. There is only a 10% probability that the
quantities actually recovered will equal or exceed the sum of the proven plus
probable plus possible reserves.


The process of estimating reserves is complex requiring significant judgments
and decisions based on available geological, geophysical, engineering and
seismic data. Although every reasonable effort is made to ensure that reserve
estimates are accurate, reserve estimation is an inferential science. As a
result, the subjective decisions, new geological or production information and a
changing environment may impact these estimates and the impact could be
material.


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.


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.

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