Release: PEARL Energy Announces Award of Sibaru Concession Offshore Indonesia

(Thursday, January 18, 2007) - PEARL Energy Limited announces that it, together with its partner Mitra Energy Limited (?Mitra Energy?), has been awarded the production sharing contract (?PSC?) for the Sibaru concession area offshore Indonesia.

PEARL?s subsidiary, PEARLOIL (Sandstone) Limited, will hold 40% interest in the Sibaru PSC and Mitra Energy, as operator, will hold the remaining 60%. Sibaru is located in the offshore extension of the greater East Java Basin and covers an area of 3,999 sq. km.

?We welcome the opportunity to work together with a new partner in Mitra and to continue to strengthen our exploration portfolio in Indonesia, where we already hold significant acreage. Previous work in the Sibaru area has demonstrated the presence of hydrocarbons, and this block builds on our position offshore East Java in a region where demand for oil and gas continues to grow at a rapid pace,? said Chris Gibson-Robinson, PEARL?s Chief Operating Officer. (end of release)