Value Microcaps Junior Energy

[2morrowsGains]

TXCO...This was taken from Pearl Exploration's web site...
(TXCO serves as operator with Pearl Exploration as its 50% partner)...

- The San Miguel heavy oil resource is in close proximity to 70%-80% of the U.S. heavy oil refining and coker capacity, which is located on the Gulf Coast. The U.S. is a net importer of crude oil, and much of the feedstock heavy oil is currently being imported from outside the U.S. In addition, the proximity to low cost coal supplies, to be used as an efficient energy to generate steam, will benefit the net profitability of the San Miguel resource. The net result of being proximate to markets, refining and low cost energy supplies for steam is that the development of the San Miguel heavy oil resource becomes scalable in 5,000 -- 10,000 Bbls/d phases.

Development activities are well underway for the San Miguel heavy oil project. The pilot facilities installation is complete, regulatory approval has been granted for the pilot test and the injection of steam began in August 2006. The first phase of full field development targets 5,000 - 7,500 Bbls/d by the end of 2007. This phase will incorporate approximately 5.25 sections.
http://www.pearleandp.com/s/SanMiguel.asp?ReportID=143129

- SEP 6, 2007 - 09:30 ET
Pearl Announces Operations Update
San Miguel Heavy Oil Project - Maverick Basin, South Texas

The Company is continuing with the San Miguel Heavy Oil Project's steam injection pilot operations to determine the technical and economic feasibility of cyclic steam injection to enhance oil recovery. Both pilot wells are presently on a third cycle of injection and production, and additional cycles will occur throughout 2007. Following discussions with our partners, a decision has been made to expand the current pilot prior to the end of 2007. Initial planning and procurement is therefore underway for the drilling of additional wells and the procurement of long-lead items for facility modifications. Discussions and planning are also underway for a second, 16 well production pilot project to the north of the existing steam injection pilot facility. The production pilot is presently projected to be operational in the second quarter of 2008.
http://cnrp.ccnmatthews.com/client/pearl_exploration/release.jsp?actionFor=767148&releaseSeq=6&a...