PEARL Energy reports operational update for Q3 2006

The following is an excerpt from PEARL Energy Limited?s operational update for the third quarter of 2006:

PRODUCTION	?
Field/PSC (INDONESIA)	Average production net to PEARL in Q3 06 (barrels of oil per day)
Salawati Island	1,505
Salawati Basin	2,113
Mengoepeh	1,149
TOTAL	4,767

Salawati Island (PEARL working interest 37.4%)
? Production commenced at the TBA oil field on 23 September and reached 3,200 barrels of oil per day (?bopd?) at quarter end from one of two development wells as production was brought up slowly.
? The Nasief?1 exploration well was drilled to a total depth of 5,922 feet and tested 100% water on electrical submersible pumps.
? The NE Matoa Tengah?1 exploration well was drilled to a total depth of 10,076 feet and tested 100% water. The well was plugged and abandoned.
? The SWO?10 development well started producing water after recovery of 220,000 barrels of oil, the second best water-free recovery well in the field. It continues to produce 820 bopd. Additional crestal wells are planned following the success of SWO?10.

Salawati Basin (PEARL working interest 34.064%)
? A plan of development for the Wakamuk field, consisting of 10 development wells and associated facilities, was submitted to BP MIGAS (Indonesia petroleum regulator) in June and drilling is expected to start in the fourth quarter 2006. The unitisation agreement with Pertamina is progressing.

Tungkal (PEARL working interest 70%)
? Final preparations are underway for a three exploration well and up to seven development well drilling campaign expected to start late in the first quarter 2007.

Sebuku (PEARL working interest 50%)
? A 275 sq. km 3D seismic acquisition program was completed on July 8 and is being processed.
? Negotiations progressed to secure a drilling rig for two firm exploration wells plus one optional well starting in early 2007. The plan is to combine this well program with the Bulu drilling program.

West Salawati (PEARL working interest 50.01%)
? Processing and interpretation of the onshore 164 sq. km 3D seismic data is ongoing.
? Preparing for an onshore drilling program to start at year end or early 2007.

Bulu (PEARL working interest 85%)
? Interpretation of the 1,982 sq. km 2D seismic data is nearly complete.
? Negotiations progressed to secure a drilling rig for two firm wells starting in early 2007. The plan is to combine this drilling program with the Sebuku program. (end)