Cirrus Energy Corporation announces Netherlands acquisition



    CALGARY, Aug. 4 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) is pleased
to announce that its wholly owned subsidiary in The Netherlands, Cirrus Energy
Nederland B.V. ("Cirrus"), as operator of the L8-D Group, has acquired a
25.479% interest in the L11b licence, L11b-A gas field, platform and pipeline
connection to the NGT trunk pipeline system from the L11b Group which was
operated by Chevron Exploration and Production Netherlands B.V. The
consideration for the acquisition is an overriding royalty over the gross
revenues arising from any future natural gas and condensate sales from the
L11b-A field plus the assumption of the future abandonment liabilities for the
L11b-A platform and wells which are estimated as approximately (euro) 5.0
million net to Cirrus' interest. All necessary government approvals for the
transfer of the interest and operatorship have been received.
    The L8-D field area has been unitised and equity interest partners in the
L8-D Group are Cirrus (operator and 25.479%), TAQA Energy B.V. (15.000%), DSM
Energie B.V. (2.880%), Energy06 Investments B.V. (1.341%), EWE AG (13.400%)
and EBN (41.900%). The L11b-A platform and pipeline will be used for the
development of the L8-D field which was successfully appraised by the L11b-A06
well (previously called L11-13) drilled by the L8-D Group. The L11b-A06 well
was completed in February, 2009, and tested at a maximum stabilised flow rate
of 820,000 Nm3/day (30.6 million standard cubic feet per day or MMscf/d) on an
48/64" choke at a flowing wellhead pressure of 200 bar (2,900 psig).
    Production from the nearly depleted L11b-A field has been shut-in and
modifications to the existing process equipment are underway to allow for the
tie-in of the L11b-A06 well. This is expected to be completed in the fourth
calendar quarter of 2009 at which time L8-D field production is expected to
commence from the L11b-A06 well. A second L8-D field appraisal/development
well is planned to be drilled from the L11b-A platform during late calendar
2009 which, if successful, is expected to be in production during early
calendar 2010.
    Whilst Cirrus remains the legal operator of both the L11b licence and
future drilling and development activities, it has been agreed that production
operations on the L11b-A platform will be managed by TAQA Energy B.V. on
behalf of the L8-D Group partners. This arrangement benefits all parties by
using TAQA's established offshore operating capabilities and infrastructure in
The Netherlands and facilitates the earliest possible start of production from
the L8-D field.
    Cirrus President and CEO David Taylor comments; "Closing of this
acquisition in a timely manner is a significant achievement given the
complexities and regulatory requirements of transferring operatorship of a
manned, offshore production platform to new owners. Ownership and control of
the existing platform and infrastructure allows for the most rapid and cost
effective development of the L8-D field which will be a significant milestone
for Cirrus. We are also pleased that we have been able to conclude an
arrangement with TAQA for their management of the production operations on the
L11b-A platform which we see as mutually benefitting all parties."

    Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and has approximately 78.9 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 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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