CALGARY, June 19 /CNW/ - Cirrus Energy Corporation ("Cirrus") (TSXV: CYR)
is pleased to announce that its wholly owned subsidiary, Cirrus Energy
Nederland B.V., has entered into an agreement with Wintershall Noordzee B.V.
and Petro-Canada Netherlands B.V. to acquire their respective 66.9% and 33.1%
interests in that part of the K10a licence which contains the undeveloped
K10-Bravo oilfield. The consideration for the acquisition is an over-riding
royalty payable out of any future production revenues. Assuming government
approval of the licence transfer, Cirrus will become operator of the K10-Bravo
oilfield with 100% working interest.
The K10-Bravo oil field is located under the existing K10-B production
platform in 28 metres of water. The K10-B platform was installed in 1980 to
process and export gas from a Permian Rotliegend reservoir. Upon cessation of
gas production in 2003, part of the gas processing facilities were
subsequently removed from the platform, but the platform structure, plus a
number of suspended wells, has been left in place. Two of the gas field
development wells encountered oil in overlying Triassic Bunter sandstones and
Cretaceous Vlieland sandstones which had average porosities of 21% and 17%
respectively. The K10-B2 well encountered the top of a 75m gross Bunter oil
column at a true vertical depth of 1405m and was production tested in 1984 at
rates up to 890 barrels of oil per day over a four month period. The K10-B7
well encountered the top of a 70m Vlieland gross oil column at a true vertical
depth of 1410m and was tested at rates up to 336 barrels of oil per day. Both
oils were 23 degrees API.
Cirrus expects to initially drill one or more step-out exploration and/or
appraisal wells on the K10-Bravo oil field to assist in establishing the
potential recoverable reserves from both reservoirs which is required to
optimise any potential development scheme. It is currently expected that such
drilling would be undertaken in the first half of 2009 using the already
contracted Noble Lynda Bossler drilling rig.
Cirrus' President, David Taylor, comments; "The K10-Bravo oil field
provides Cirrus with an exciting opportunity to develop a proven oil
accumulation. A particular advantage is the presence of the existing K10-B
platform which may significantly reduce both the development cost and time to
Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and has approximately 63.0 million fully diluted
common shares outstanding.
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: 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