Cirrus Energy Corporation - Netherlands activities update



    CALGARY, April 30 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) is
pleased to provide the following activities update regarding substantial
recent progress by its wholly owned subsidiary, Cirrus Energy Nederland B.V.
("Cirrus").

    M1-A Development

    The Dutch Mining Council has recommended the award of a Production
Licence for the M1a block to Cirrus. Formal ministerial approval and award of
the production licence is expected by June 2007. The production licence award
is also expected to provide for participation in the M1-A field development by
the Dutch State through Energie Beheer Nederland B.V ("EBN"). Once the
production licence is awarded and EBN becomes a 50% working interest partner
in the M1-A development, EBN will reimburse past costs related to the M1-A
field which are estimated to be $27 million (pre-tax) net to Cirrus.
    Partners have approved an interim development budget to proceed with
engineering design work prior to production licence award to maintain the
project schedule. This engineering work will also establish an accurate
estimate of the expected development costs, preliminary estimates of which are
higher than previously expected. Approval of the full development plan and
budget is contingent upon finalisation of commercial terms for access to third
party infrastructure.

    M7-A Development

    Partners have approved an interim development budget to proceed with
engineering and design work and to establish an accurate estimate of the
expected development costs. Approval of the full development plan and budget
is contingent upon finalisation of commercial terms for access to third party
infrastructure.

    Drilling Rig Availability

    Cirrus has been offered a firm rig slot with the jack-up rig Noble Lynda
Bossler for re-entry and completion of the M1-A and M7-A development wells
during the third quarter of 2008 and discussions to contract the rig are
underway. Having access to a rig in this timeframe provides for the timely
completion of both projects and meeting the first gas target of fourth quarter
of 2008.

    Bank Financing

    Cirrus Energy Corporation has executed an Engagement Letter with the
Royal Bank of Scotland ("RBS") in contemplation of securing a loan facility
for the financing of the M1-A and M7-A developments. This is expected to lead
to a fully termed loan agreement subject to normal conditions precedent usual
in such agreements.

    David Taylor, Cirrus' Chief Executive Officer, comments:
    "Material progress has been made on a number of fronts with respect to
moving forward with both the M1-A and M7-A field developments and to
maintaining our initial targets for planned commencement of production. We are
delighted with the support we have received from the Dutch authorities who
share our enthusiasm with respect to bringing gas from these fields to market
and for the financial support offered by RBS who we view as a strategic long
term financial partner of choice for companies such as Cirrus".

    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.

    %SEDAR: 00021839E




For further information:

For further information: David Taylor, President and Chief Executive
Officer; Pamela Orr, Vice President, Finance and Chief Financial Officer,
Cirrus Energy Corporation, Suite 350, 926 - 5th Avenue S.W., Calgary, Alberta,
T2P 0N7, Canada Website: www.cirrusenergy.ca, Telephone: (403) 216-5030,
Facsimile: (403) 265-9530

Organization Profile

CIRRUS ENERGY CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890