CALGARY, Aug. 27 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) announces the following operational update regarding ongoing activities in our wholly owned subsidiary, Cirrus Energy Nederland B.V. ("Cirrus") in The Netherlands.
Well M07-07 (Cirrus 42.75%, operator)
The deviated M07-07 well, drilled from the M7-A production platform, encountered the top of the prognosed Jurassic-aged sandstone reservoir at a true vertical depth of 2,792 meters sub-sea. The true vertical gross thickness of the drilled reservoir section is 48.7 meters the upper part of which is gas bearing with an interpreted gas-water contact at 2,816 meters. Preliminary petrophysical analysis indicates average porosities of 9% to 12% with an average net to gross ratio of approximately 50% over the reservoir interval. Permeabilities range from 0.1 mD to 10 mD. Further detailed analysis of both core and log data are underway to improve quantification and understanding of the petrophysical parameters for this reservoir.
The M07-07 appraisal well was initially completed and, upon clean-up flow, tested at a stabilised rate of 268,000 Nm3/d (10.0 MMscf/d) with a flowing well head pressure of 110 bar (1600 psi) through a 36/64" choke.
At the end of the initial clean up test, however, it was established that a permanent packer in the completion had failed and was leaking which therefore required replacement. Following a workover to replace the packer, there was damage to the formation as a result of exposure to fluids used to kill the well and only minor gas flow rates have subsequently been measured. As a consequence of the low productivity due to formation damage, plus the proximity of the gas-water contact, the existing wellbore is not expected to be used for production purposes.
The well has met the pre-drill objective of confirming the presence of a gas-bearing Jurassic reservoir. Detailed engineering design and planning will be undertaken to optimise the design of a potential future sidetrack of the M07-07 well to achieve optimum productivity and recovery of gas from this new reservoir. Evaluation of petroleum initially in place and estimates of recoverable volumes of gas in the new Jurassic pool appraised by M07-07 will be undertaken as part of Cirrus' 31st August year-end reserves audit exercise.
Partners in the well are the Dutch state participant, EBN B.V. (50%), TAQA Offshore B.V. (5%) and Energy06 Investments B.V. (2.25%).
Cirrus' President, David Taylor, comments: "The M07-07 well has established that there is a potentially substantial additional gas accumulation which can be developed and produced via the existing M07-A production platform and export infrastructure. With the substantial amount of data acquired from the M07-07 well, detailed work will now be undertaken to optimise the development of this new pool."
Cirrus Energy Corporation is an international oil and gas company headquartered in Calgary and has approximately 93.4 million fully diluted common shares outstanding. Additional information about Cirrus and its business activities is available at www.cirrusenergy.ca and www.sedar.com.
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, 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