CALGARY, Feb. 5 /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 TAQA Offshore B.V. ("TAQA")
whereby Cirrus will dispose of 50% of its interests in the Q11 and Q14
offshore exploration licences. The licences are located about 40 km east of
TAQA's P15ACD facilities. The consideration for the disposition takes the form
of a farm-in on a two-for-one basis relating to costs of the first exploration
well on the acreage which is planned to be drilled on the Q14-Alpha prospect.
Any excess of gross well costs exceeding (euro)12.5 million in the event of a
dry hole, or (euro)16.5 million if the well is tested, will be funded by the
partners according to their post-farmout working interests. Upon closing of
the farmout, Cirrus' working interests, post EBN participation, will be 28.5%
in block Q11 and 30% in block Q14. Cirrus will remain the operator of both
The Q14-Alpha prospect is a large fault block interpreted and mapped on
3D seismic data. The main reservoir targets are Triassic-aged Bunter
sandstones with secondary reservoir potential in Permian-aged Zechstein and
Rotligend sandstones. Cirrus' internal estimate of combined most likely,
gross, unrisked, recoverable resource potential in both reservoirs in the
Q14-Alpha prospect is 175 bcf. It is expected that the Q14-Alpha prospect will
be drilled in late 2008 using the already contracted Noble Lynda Bossler
jackup drilling rig at a non-crestal location that, if successful, is expected
to establish that commercial development of the primary target is possible.
Further drilling would be required to determine the potential of the secondary
reservoir and to develop the field.
Cirrus' President, David Taylor, comments; "I am delighted to have TAQA,
an established upstream company in The Netherlands, as our exploration partner
in these prospective blocks. This arrangement brings benefits to both parties
which, for Cirrus, is in line with our stated strategy and reduces our risk
capital expenditures while maintaining a material exposure to the substantial
value of exploration success."
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