Cirrus Energy Corporation - Announces farmout of Netherlands blocks Q10, Q13b, Q16b and the L8-D Field



    CALGARY, Sept. 24 /CNW/ - Cirrus Energy Corporation ("Cirrus") (TSXV:
CYR) is pleased to announce that its wholly owned subsidiary, Cirrus Energy
Nederland B.V., has entered into a three well farmout agreement with TAQA
Offshore B.V. ("TAQA"). The terms of the agreement are as follows:

    Block Q13b

    Cirrus will dispose of a net 30% working interest in the Q13b offshore
exploration licence. The consideration for the disposition takes the form of a
farm-in on a 1.8-for-1 basis relating to costs of the first exploration well
on block Q13b with TAQA funding a net 54% of the gross well costs and
expenses. Any excess of gross well costs exceeding Euro 15.0 million in the
event of a dry hole, or Euro 19.0 million if the well is tested, will be
funded by the partners according to their post-farmout working interests. Upon
closing of the farmout and post EBN participation, Cirrus will fund 5.7% of
the first exploration well capital costs up to the stated limits and retain a
working interest of 28.5% in block Q13b. Cirrus will remain the operator.

    Blocks Q10 and Q16b

    Cirrus will dispose of a net 30% working interest in both the Q10 and
Q16b offshore exploration licences. The consideration for the disposition
takes the form of a farm-in on a 1.8-for-1 basis relating to costs of the
first exploration well on either block Q10 or Q16b with TAQA funding a net 54%
of the gross well costs and expenses. Any excess of gross well costs exceeding
Euro 15.0 million in the event of a dry hole, or Euro 19.0 million if the well
is tested, will be funded by the partners according to their post-farmout
working interests. Upon closing of the farmout and post EBN participation,
Cirrus will fund 5.7% of the first exploration well capital costs up to the
stated limits and retain a working interest of 28.5% in blocks Q10 and Q16b.
Cirrus will remain the operator of both blocks.

    L8-D Field

    Cirrus will dispose of a net 15% working interest in the planned L8-D
Unit covering the L8-D Field. The consideration for the disposition takes the
form of a farm-in on a 1.8-for-1 basis relating to costs of the first
appraisal well on the field with TAQA funding a net 27% of the gross well
costs and expenses. If a deviated well from the L11-B platform is drilled, any
excess of gross well costs exceeding Euro 24.0 million in the event of a dry
hole, or Euro 28.0 million if the well is tested, will be funded by the
partners according to their post-farmout working interests, otherwise, if a
verticle well is drilled, any excess of gross well costs exceeding Euro
18.0 million in the event of a dry hole, or Euro 22.0 million if the well is
tested, will be funded by the partners according to their post-farmout working
interests.
    Upon closing of the farm-out, equity interest partners in the L8-D Unit
are expected to be Cirrus 25.479%, TAQA 15.000%, DSM Energie B.V. 2.880%,
Energy06 Investments B.V. 1.341%, EWE Aktiengesellschaft AG 13.400% and EBN
41.900%. Cirrus will fund 14.079% of the first appraisal well capital costs up
to the stated limits and remain operator of the L8-D Unit.

    Cirrus' President, David Taylor, comments; "I am delighted that Cirrus
and TAQA have extended the scope of their joint venture activities with this
latest transaction which builds on the currently drilling Q14-3 exploration
well. Having TAQA, an established upstream company in The Netherlands, as a
partner in three further high-impact appraisal and exploration wells brings
substantial benefits to both parties. For Cirrus, this transaction is in full
alignment with our strategy to significantly reduce our risk capital exposure
whilst retaining a material interest in the substantial potential value of
success. In the current unstable market environment, it is considered
especially important to prudently manage cash resources to ensure that Cirrus
can participate in an extensive programme of opportunities without requiring
any further equity or debt financing. Cirrus is particularly well placed in
this regard and fully funded for both our ongoing developments and for our
current drilling plans through 2009 and into 2010."

    Paul van Gelder, Managing Director of TAQA in Europe; "This is another
important step for TAQA, allowing us to explore for more hydrocarbon volumes
in the Q blocks close to our existing P15 infrastructure position in the Dutch
North Sea. We are pleased to be partnering Cirrus again. Additionally, a
successful well on the L8-D Unit could see commercial gas flowing within two
years, benefiting all parties concerned."
    TAQA has a strong focus on expanding its Upstream activities in Europe
and North Africa. In The Netherlands, TAQA acquired BP Netherlands' gas
exploration and production assets including onshore, offshore and storage
facilities in 2007, located in the Dutch Continental Shelf of the North Sea
and in the region of Alkmaar in the North Western part of The Netherlands.
TAQA's assets in the North Sea are operated under the subsidiary TAQA Energy
B.V.
    TAQA Offshore B.V. is a wholly owned subsidiary of TAQA Energy B.V. TAQA
Energy B.V. is part of the Abu Dhabi National Energy Company PJSC (TAQA), a
global energy company employing approximately 2,800 people from 38 different
nations and operating from offices in: Abu Dhabi, Ann Arbor (Michigan),
Aberdeen, Amsterdam, Calgary and The Hague. TAQA's footprint is further
extended through alliances with partners across Africa, the Middle East,
Europe, North America and India.

    Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and has approximately 76.1 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.

    
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    





For further information:

For further information: about Cirrus please contact: David Taylor,
President and Chief Executive Officer, Pamela Orr, Vice President Finance and
Chief Financial Officer, Cirrus Energy Corporation, Suite 208, 5 Richard Way
SW, Calgary, Alberta, T3E 7M8, Canada, Website: www.cirrusenergy.ca,
Telephone: (403) 216-5030, Facsimile: (403) 265-9530; For further information
about TAQA, please contact: Mr. Paul van Gelder, Managing Director, TAQA
Energy B.V., Telephone: +31 70 333 75 00; Geesje van Niejenhuis, TAQA Europa
B.V., Telephone: +31 20 797 51 00, www.taqa.ae/nl/

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CIRRUS ENERGY CORPORATION

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