PEARL Energy reports operational update for Q2 2006

The following is an excerpt from PEARL Energy Limited?s operational update for the second-quarter 2006 (Q2 06):

PRODUCTION	?
Field/PSC (INDONESIA)	Average production net to PEARL in Q2 06 (barrels of oil per day)
Salawati Island	1,594
Salawati Basin	2,265
Mengoepeh	1,468
TOTAL	5,327

Salawati Island (PEARL working interest 37.4%)
? The expected departure date of the FPSO from the Singapore shipyard is scheduled for the third quarter after experiencing weather-related delays in the conversion work.
? Operations were suspended on the Salawati K-1 well re-entry after experiencing downhole mechanical problems that prevented the well from being tested.
? The NE Matoa-1 exploration well was drilled to a total depth of 10,433 feet and commenced testing.
? The SWO-10 development well has continued producing over 1,000 bopd without water for over six months.

Salawati Basin (PEARL working interest 34.064%)
? The Jaya Deep-1 exploration well was drilled to a total depth of 9,065 feet and plugged and abandoned.
? The Masebei-1 exploration well was drilled to a total depth of 2,627 feet and plugged and abandoned.

Tungkal (PEARL working interest 70%)
? The Mengoepeh-18 exploration well was drilled to a total depth of 1,344 meters and tested 700 bopd after a hydraulic fracture treatment. It was brought online 1 July producing 486 bopd.

Sebuku (PEARL working interest 50%)
? The Berlian-1A exploration well was drilled to a total depth of 4,200 feet, although the target reservoir was encountered at 2,173 feet. Samples and wireline logs indicated that there were no hydrocarbons present in the Berai Formation. The well was plugged and abandoned without testing.
? A 275 sq. km 3D seismic acquisition program commenced on June 17.
? Negotiations progressed to secure a drilling rig for a two to three well drilling program starting at year end or in early 2007.

West Salawati (PEARL working interest 50.01%)
? An onshore 147 sq. km 3D seismic acquisition program was completed on 18 June and processing of the data has commenced.

Bulu (PEARL working interest 85%)
? Negotiations progressed to secure a drilling rig for one to two exploration wells starting at year end or in early 2007. (end)