Cirrus Energy Corporation announces and closes the amendment of its financing with The Royal Bank of Scotland plc

    CALGARY, July 3 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) and its
wholly owned subsidiary Cirrus Energy Nederland B.V. are pleased to announce
they have signed an Amendment and Restatement Agreement relating to the
Secured Revolving Borrowing Base Facility Agreement (the "Amended Facility")
with The Royal Bank of Scotland plc ("RBS").
    The original (euro)30 million Secured Revolving Borrowing Base Facility
Agreement (the "Original Facility") was put in place to support the funding of
both the M1-A and M7-A development projects. In light of the success of the
drilling program in the L8-D field and the delays in the M1-A development
project, the Amended Facility has been established to finance the completion
of the M7-A development project and to finance the modification work on the
L11b-A platform that is required to tie-in the recently drilled L11b-A06
development well. Both the M7-A and L8-D fields are expected to commence
production in the fourth quarter of 2009.
    The Original Facility was comprised of two tranches; a (euro)25 million
senior tranche to support the funding of the original development projects as
well as a (euro)5 million junior tranche which was available in the event of
unbudgeted field development costs. The initial availability under the Amended
Facility is expected to fully cover Cirrus' net share of the remaining costs
to complete the M7-A development and the required modifications and well
tie-in at the L11b-A platform which are estimated to be approximately (euro)16
million.
    The first draw on the Amended Facility is expected imminently for M7-A
and later for L8-D following satisfaction of certain conditions related to
L8-D. The facility reduction schedule has not changed from the Original
Facility culminating in a maturity date of June 30, 2012.
    Cirrus President and CEO David Taylor comments; "We are very pleased that
we have concluded this revised agreement with RBS and are able to use the debt
facility to fund our remaining development costs to bring both the M7-A and
L8-D fields into production. Coupled with our strong balance sheet and cash
position, this additional working capital allows Cirrus to continue with the
accelerated exploration and development of its assets in the Netherlands. "

    Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and has approximately 78.9 million fully diluted
common shares outstanding.

    Forward-Looking Statements

    This press release may include forward-looking statements including
opinions, assumptions, estimates and expectations of future production, cash
flow and earnings. When used in this document, the words "anticipate",
"believe", "estimate", "expect", "intent", "may", "project", "plan", "should"
and similar expressions are intended to be among the statements that identify
forward-looking statements. Forward-looking statements are subject to a wide
range of risks and uncertainties, and although the Company believes that the
expectations represented by such forward-looking statements are reasonable
there can be no assurance that such expectations will be realized. Any number
of important factors could cause actual results to differ materially from
those in the forward-looking statements including, but not limited to, the
volatility of oil and gas prices, the ability to implement corporate
strategies, the state of domestic capital markets, the ability to obtain
financing, changes in oil and gas acquisition and drilling programs, operating
risks, production rates, reserve estimates, changes in general economic
conditions and other factors more fully described from time to time in the
reports and filings made by Cirrus with securities regulatory authorities.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.

    %SEDAR: 00021839E

For further information: David Taylor, President and Chief Executive
Officer, Pamela Orr, Vice President Finance and Chief Financial Officer,
Cirrus Energy Corporation, Suite 208, 5 Richard Way S.W., Calgary, Alberta 
T3E 7M8, Canada, Website: www.cirrusenergy.ca, Telephone: (403) 216-5030,
Facsimile: (403) 265-9530