Cirrus Energy Corporation - Trinidad Reserves Update



    CALGARY, March 14 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) ("Cirrus"
or the "Company") is pleased to announce the results of an update to its Coora
Field, Trinidad, reserves effective Dec 31, 2007. The Reserves and Contingent
Resources were evaluated by GLJ Petroleum Consultants Ltd. ("GLJ") effective
December 31, 2007 in accordance with National Instrument 51-101. Cirrus will
be filing a Material Change Report, or Form NI 102F3, on the System for
Electronic Document Analysis and Retrieval at www.sedar.com.

    Select data follows:

    
    Cirrus Working Interest Reserves Before Deducting Royalties
    Coora Field, Trinidad
    Based on Forecast Prices and Costs(1)

                      --------------------------   --------------------------
                          December 31, 2007              August 31, 2007
                      --------------------------   --------------------------
                        Oil      Gas       BOE       Oil      Gas      BOE
                      (Mbbls)   (MMcf)   (Mbbls)   (Mbbls)   (MMcf)   (Mbbls)
                      --------------------------   --------------------------
    Proved             1,310        -     1,310       687         -      687
    Probable           1,440        -     1,440     1,117         -    1,117
    --------------------------------------------   --------------------------
    Total              2,750        -     2,750     1,804         -    1,804
    --------------------------------------------   --------------------------
    --------------------------------------------   --------------------------


    Net Present Values of Future Net Revenue Discounted at 10%
    Coora Field, Trinidad
    Based on Forecast Prices and Costs(1)

                      --------------------------   --------------------------
                             Before Taxes                 After Taxes
                               ($M Cdn)                     ($M Cdn)
                      --------------------------   --------------------------
                          December   August            December   August
                          31, 2007  31, 2007           31, 2007  31, 2007
                      --------------------------   --------------------------
    Proved                 15,192     4,250              5,504     1,802
    Probable               21,296    12,452              6,979     4,372
    --------------------------------------------   --------------------------
    Total                  36,488    16,702             12,483     6,174
    --------------------------------------------   --------------------------
    --------------------------------------------   --------------------------
    

    The basis for the update is a result of recent success in produced sand
control utilizing resin coated fracture proppant together with extensive
recent field technical studies. As Cirrus is planning to offer its interests
in the Coora Field for sale in 2008, the updated reserves report provides a
current assessment of the field's potential.
    Efforts to develop a commercially effective means of stimulating wells in
the Coora field, while achieving produced sand control, culminated with
significant recent success when three wells were fracture stimulated with
resin coated proppant. The wells were treated in November 2007 and to date are
producing free of formation sand or proppant.
    In addition, ten pool studies and subsequent pool development plans were
prepared to quantify expected recoveries under additional primary and
secondary recovery activities. Previous reserves evaluations had relied
heavily on a statistical approach while the recent pool studies now provide
the basis for specific locations for future fracture stimulation treatments,
sidetracks and re-drills as well as an initial waterflood scheme design. The
results of the ten studies were utilized in scaling up expectations for the
rest of the field.

    Contingent Resources

    In addition to the reserves identified in the current report, GLJ have
determined the remaining Best Estimate Contingent Resource potential in the
Coora Field, onshore Trinidad, to be an additional 5,965 Mbbls of company
working interest oil. This total is comprised of 887 Mbbls relating to primary
recovery activities falling outside of a 4 year activity horizon and
5,078 Mbbls relating to waterflood activities. Under regulatory standards
governing reserve assignments, activities outside of a time horizon deemed
reasonable for the project are considered as a Contingent Resource. Currently,
the Lease Operatorship contract form under which the Company's interests are
held does not contemplate secondary recovery activities and as such these
volumes are also assigned as Contingent Resource. However, the Petroleum
Company of Trinidad and Tobago ("Petrotrin") has indicated a willingness to
entertain proposals for secondary recovery operations.
    The current assignment is a net increase of 2,340 Mbbls over August
31, 2007 levels. This net revision reflects a reduction due to the transfer of
reserves previously classified as Contingent Resource into Proved plus
Probable and the addition of Contingent Resources based on the potential for
waterflooding the Coora reservoirs.

    Risks and Uncertainties

    The Contingent Resources are associated with primary and waterflood
activities and are not currently planned to be developed in a timeframe that
enables them to be classified as reserves as at the effective date of the
evaluation. In addition, the contract form governing the operations does not
currently encompass waterflood operations. To the extent that Cirrus has not
committed to develop any of the contingent resources, any decision to develop
may reflect a different planning basis than utilized in preparing the
estimates. The assumptions utilized in preparing the estimates are within
standard technical applications currently being utilized by industry in other
comparable applications. While Cirrus considers the contingent resources to be
potentially recoverable under reasonable economic and operating conditions,
there is no certainty that they will be commercially viable.

    
    Notes

    (1) The pricing assumptions used with respect to net present values of
        future net revenue as well as the inflation rates used for operating
        and capital costs are set forth below in the GLJ Summary of Price
        Forecasts as at January 1, 2008 (except as noted).



                          GLJ Petroleum Consultants
               Summary of Price Forecasts & Economic Conditions

                   WTI                        Trinidad
                  Crude                     Field Price
                  Oil(2)      Exchange      Crude Oil(2)    Inflation
                 $US/bbl      $US/$Cdn        $Cdn/bbl          %
                ------------------------------------------------------
    2008          92.00         1.00           75.44           2.0
    2009          86.28         1.00           70.75           2.0
    2010          80.74         1.00           66.21           2.0
    2011          77.27         1.00           63.36           2.0
    2012          75.76         1.00           62.12           2.0
    2013          74.27         1.00           60.90           2.0
    2014          72.81         1.00           59.70           2.0
    2015          71.38         1.00           58.53           2.0
    2016          70.00         1.00           57.40           2.0
    2017 and
    thereafter    70.00         1.00           57.40           2.0

    (2) Expressed in January 1, 2008 dollars
    

    Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and currently has 58.3 million common shares
outstanding (63.0 million fully diluted).

    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

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CIRRUS ENERGY CORPORATION

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