Pearl Exploration and Production Ltd, along with its Joint Venture partner, Serrano Energy Ltd. 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.

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.

Pearl President and CEO Keith Hill said, "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."