CALGARY, June 8 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) ("Cirrus")
is pleased to announce that it has entered into a definitive share purchase
agreement for the acquisition of Wilderness Energy UK Limited ("WEUK") which
will become a fully-owned subsidiary of Cirrus. The acquisition is expected to
close on or about June 16, subject to regulatory approval. The consideration
for the acquisition is 500,000 freely tradable ordinary shares of Cirrus.
WEUK is a wholly owned subsidiary of Wilderness Energy Corporation, a
private Canadian junior exploration and production Company. WEUK was formed in
2005 to acquire prospective acreage in the UK North Sea and currently holds
non-operated interests ranging from 25% to 50% in eight exploration licences
in the central and northern North Sea and one exploration licence in the
southern North Sea. Gross acreage under licence is 1972 km2 (800 km2 net) and
there are currently one gas and fifteen medium to heavy oil prospects and
leads identified. The licences expire in 2012 or later.
All of the licences were jointly acquired by WEUK and Silverstone CNS
Limited ("Silverstone") who operates all of the licences. There are no firm
well commitments and ongoing work commitments over the next two years are
estimated to total GBP 700,000 net to WEUK which includes lease rentals and
geological and geophysical work.
Cirrus President and CEO David Taylor comments; "This acquisition
provides an attractive low cost entry into the UK North Sea. The licences
contain significant exploration potential particularly for heavy oil which has
recently benefited from improved fiscal terms. As there are no firm drilling
commitments in the acquired UK licences, Cirrus remains fully in control of
its investment decisions but at the same time gains exposure to significant
exploration upside and further opportunities in an additional attractive
low-risk jurisdiction. This acquisition expands and broadens the future
opportunity portfolio for Cirrus without diluting its focus on the exploration
and development of its operated assets in the Dutch North Sea."
Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and will have approximately 78.9 million fully
diluted common shares outstanding upon closing of this acquisition.
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.
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