CALGARY, Sept. 14 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) is pleased to announce that its wholly owned subsidiary in The Netherlands, Cirrus Energy Nederland B.V. ("Cirrus") has successfully completed the drilling and testing of the M7-A01X production well on the M7-A Field. The well was spudded with the Noble Lynda Bossler jackup drilling rig on July 17, 2009 and reached a total drilled depth of 3,560 m on September 3, 2009. The quality of the primary Triassic reservoir is higher than in the original discovery well and, during clean up, the well flowed at a maximum rate of 43.1 MMscf/d at a FWHP of 261 bar (3,786 psig) through a 48/64"choke.
The well has been tied in to the fully commissioned M7-A platform and export facilities and production commenced on September 12, 2009. The long term average production rate is limited by capacity at the export facilities at 21.0 MMscf/d which is expected to result in an extended period of plateau production. The price received for Dutch gas is based on a basket of alternative energy sources and historically has closely followed that of crude oil with a lag of about 6 months. At a Brent oil price of US$70.00 per barrel, the future realised price for M7-A gas is expected to be about C$9.50 per thousand cubic feet.
Partners in the M7-A development are Cirrus (42.75% and operator), DSM Energie B.V. (5.0%), Energy06 Investments B.V. (2.25%) and EBN (50%).
Cirrus President and CEO David Taylor comments; "The start-up of the M7-A Field marks a significant milestone for Cirrus in the Netherlands as both the company's first operated, completed development project and first production in the country. This achievement underscores a core component of our business strategy in The Netherlands where we intend to establish Cirrus as a motivated and capable developer of similar discovered and undeveloped fields."
Cirrus Energy Corporation is an international oil and gas company headquartered in Calgary and has approximately 78.7 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.
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SOURCE CIRRUS ENERGY CORPORATION
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