Cirrus Energy Corporation - Netherlands L8-D Field Reserves Evaluated



    CALGARY, April 29 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) ("Cirrus"
or the "Company") is pleased to provide the results of an engineering reserves
evaluation of its recently announced L11-13 appraisal well (now renamed
L11b-A06) which was directionally drilled from the L11b-A platform into the
L8-D field in the Dutch North Sea. The Reserves and Gas Initially In Place
('GIIP') were evaluated by GLJ Petroleum Consultants Ltd. ("GLJ") effective
April 1, 2009 in accordance with National Instrument 51-101.

    
    Highlights:

    -   Data from the L1lb-A06 well and that of the original discovery well,
        L8-16x, located 5.9 kms to the north of L11b-A06, indicates that the
        whole L8-D structure appears to be gas charged with a common
        gas-water-contact.

    -   GLJ has assigned the L8-D structure a best estimate gross GIIP of 323
        BCF.

    -   A first phase of development will involve production from only the
        southern end of the L8-D field using the L11b-A06 well. This well is
        expected to drain a single fault-bounded compartment which has best
        estimate gross GIIP of 41.1 BCF (Cirrus interest 10.5 BCF). Reserves
        assigned to the L11b-A06 well are as follows:


    Reserves Data (Forecast Prices and Costs)

                       SUMMARY OF OIL AND GAS RESERVES
                 AND NET PRESENT VALUES OF FUTURE NET REVENUE
                             as of April 1, 2009
                  FORECAST PRICES AND COSTS - April 1, 2009


                                            NATURAL GAS
                                     -------------------------
                                        Gross        Net
    RESERVES CATEGORY                   (MMcf)      (MMcf)
    -------------------------------  ------------ ------------

    PROVED
      Undeveloped                          3,471       3,195
                                     ------------ ------------

    TOTAL PROVED                           3,471       3,195

    PROBABLE                               2,499       2,301
                                     ------------ ------------

    TOTAL PROVED PLUS PROBABLE             5,970       5,496
                                     ------------ ------------
                                     ------------ ------------


                                        BEFORE       AFTER
                                        INCOME      INCOME
                                         TAXES       TAXES
                                      DISCOUNTED   DISCOUNTED
    RESERVES                              AT           AT
    CATEGORY                          (10%/year)  (10 %/year)
    -------------------------------  ------------ ------------
                                         (M$)         (M$)
    PROVED
      Undeveloped                          3,327        3,336
                                     ------------ ------------

    TOTAL PROVED                           3,327        3,336

    PROBABLE                               6,644        6,603
                                     ------------ ------------

    TOTAL PROVED PLUS PROBABLE             9,970        9,939
                                     ------------ ------------
                                     ------------ ------------
    

    Background

    The L8-D field is located on the Netherlands continental shelf
approximately 50 kms north of the port of Den Helder in a water depth of 27m.
The field, approximately 37.0 square kilometres in areal extent, has been
unitized and Cirrus is the operator with a 25.479% working interest in the
L8-D Unit.
    The L11b-A06 well was drilled into the southern portion of the field and,
at reservoir depth, is approximately 5.9 kms to the south of the L8-16x
discovery well, drilled in 2004. Both wells are interpreted as part of the
same L8-D field. The field consists of a large fault block containing an early
Permian-aged Upper Slochteren Formation sandstone reservoir which is
stratigraphically subdivided into three sand units, all of which were cored
and subsequently tested in L11b-A06. The test results were announced on
February 19, 2009.
    The L11b-A06 well was drilled from an existing production platform,
L11b-A, operated by a third party. The L8-D field partners have agreed to
pursue a first phase of development of the L8-D field which will initially
involve acquisition of the L11b licence, the L11b-A production platform and
the tie-in of the L11b-A06 well. Agreement for acquisition of the L11b licence
and the L11b-A platform from the L11b partners is currently being finalized
and is expected to be completed in the third calendar quarter of 2009.
Operatorship will be transferred concurrently with the acquisition. Once this
process is completed, the L11b-A06 well will be tied-in and put into
production which is anticipated during the fourth calendar quarter of 2009.
All anticipated costs of L11b-A06 well tie-in, platform modification and
future abandonment liability were included in the reserves evaluation.
    The L8-D reserves are in addition to the 37.8 BCF of probable reserves
assigned to the Company in the Netherlands as of August 31, 2008. Because of
the different evaluation and effective dates, the new reserves assigned to
L8-D cannot necessarily be added directly to the company's previous reserves
balance.

    Gas Initially in Place

    GLJ have determined the entire L8-D structure to have a best estimate
gross gas initially in place (GIIP) of 323 BCF (Cirrus interest 82 BCF). Under
regulatory standards governing reserve assignments, a full field development
plan and further drilling will be required to identify how much of this gas in
place can be economically produced and ultimately considered as reserves.

    Risks and Uncertainties

    Development of the entire field and that proportion of the GIIP which
will be recoverable is contingent on developing a full-field development plan
and future drilling. The assumptions utilized in preparing the GIIP estimates
are within standard technical applications currently being utilized by
industry in other comparable applications. A recovery project cannot be
defined for this volume of discovered GIIP at this time. There is no certainty
that it will be commercially viable to produce any portion of the resources.

    Pricing Assumptions

    The following sets forth the benchmark reference prices and field prices,
as at April 1, 2009, reflected in the Reserves Data. These price assumptions
were provided to the Company by GLJ, the Company's independent qualified
reserves evaluator.

    
                                                        Field
                 Brent                       NBP        Price
               US$/BBL     USD/CAD$   CAD$/MMBTU     CAD$/Mcf    Inflation
               -------     --------   ----------     --------    ---------

    2010          60.5         0.83         8.58         8.8           2%

    2011          68.5         0.85         8.95        9.19           2%

    2012          75.5        0.885         8.98        9.21           2%

    2013          83.5        0.925          9.5        9.75           2%

    2014         92.35         0.95        10.23        10.5           2%

    2015         94.23         0.95        10.44       10.71           2%

    2016         96.14         0.95        10.65       10.93           2%
    

    Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and currently has approximately 77.3 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 the 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:

For further information: David Taylor, President and Chief Executive
Officer; Glenn Gradeen, Executive Vice President and Chief Operating 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

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CIRRUS ENERGY CORPORATION

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