CALGARY, Oct. 21 /CNW/ - Cirrus Energy Corporation ("Cirrus") (TSXV: CYR)
is pleased to announce that its wholly owned subsidiary, Cirrus Energy
Nederland B.V., has successfully drilled the Q14-3 exploration well to a total
true vertical depth ("tvd") of 3020 metres sub-sea. Partners in the well are
EBN B.V. (40%) and TAQA Offshore B.V. ("TAQA") (30%) with Cirrus (operator)
retaining a 30% interest subsequent to a previously announced farmout
agreement with TAQA.
The Q14-3 well, located in offshore Netherlands Block Q14 in 18 metres of
water, was designed to test a well-defined fault block with the primary target
being Triassic-aged Bunter sandstone reservoirs with secondary potential in
Permian-aged Zechstein sandstone reservoirs. The primary target was
encountered at 2554 metres tvd sub-sea with indications of gas during drilling
and coring despite substantial mud losses to the formation. A 28m core was cut
over the reservoir section. The secondary target was encountered at 2829
metres tvd sub-sea which also had indications of gas during drilling and a
second 28m core was cut in this interval. Both potential reservoir sections
have been open-hole logged and preliminary petrophysical evaluation indicates
the presence of gas in 7.5m of net pay in the Triassic Bunter reservoir with
average porosities of 11%. The secondary Zechstein reservoir appears to be
gas-bearing but tight.
Partners have agreed to flow test the Bunter reservoir with results
expected in approximately 10 to 15 days.
Cirrus' President, David Taylor, comments; "These preliminary results
from Cirrus' first exploration well in The Netherlands are encouraging
although both flow test data and further geological and geophysical analysis
will be required before the economic potential of the Q14-Alpha structure can
be assessed. It is noteworthy that the drilling operations, which were the
first to be managed by Cirrus' internal drilling team in The Netherlands, went
smoothly and were fully on prognosis and budget."
Forward Drilling Programme
It was expected that, once the Q14-3 well was completed, the Noble Lynda
Bossler drilling rig would be moved to the M7-A platform to drill the
development well on the field. However, the installation of the M7-A platform
has been significantly delayed by bad weather conditions in the Dutch North
Sea and therefore the rig will be moved to a different location for the second
well in Cirrus' drilling programme. Two alternative drilling locations that
are under active consideration are appraisal wells on either the KlO-Bravo oil
field or the L8-D gas field.
Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and has approximately 76.1 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: please contact: David Taylor, President and
Chief Executive Officer, Pamela Orr, Vice President Finance and Chief
Financial 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