CALGARY, April 28 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) is
pleased to announce the following operational update regarding ongoing
development activities in our wholly owned subsidiary, Cirrus Energy Nederland
B.V. ("Cirrus") in The Netherlands.
M7-A Project (Cirrus 42.75%, operator)
A turnkey lump sum contract has been awarded to Seaway Heavy Lifting for
the use of the heavy lift vessel HLV Stanislav Yudin to install the M7-A
platform during June 2009. Once the platform is installed, the Noble Lynda
Bossler jackup rig will drill the M7-A01 development well which has an
expected duration of 53 days. Tie-in activities at NAM's L9-FF platform where
gas from the M7-A field will be processed are essentially completed. On
current planning, first gas from M7-A is expected during the fourth calendar
quarter of 2009.
L8-D Project (Cirrus 25.5%, operator)
The L8-D field partners have agreed to pursue a first phase of
development of the L8-D field which will initially involve acquisition of the
L11b licence, the L11b-A production platform and the tie-in of the L11-13 well
which was tested and completed as a development well on the L8-D field in
February 2009 (this well has subsequently been renamed L11b-A06). Agreement
for acquisition of the L11b licence and the L11b-A platform from the L11b
partners is currently being finalized and is expected to be completed in the
third calendar quarter of 2009. Operatorship will be transferred concurrently
with the acquisition. Once this process is completed, the L11b-A06 well will
be tied-in and put into production which is anticipated during the fourth
calendar quarter of 2009.
Whilst Cirrus is, and will remain, the formal operator of the L8-D field,
one of the field partners, TAQA Energy B.V. ("TAQA") will be assuming
responsibility for production operations at the L11b-A platform. TAQA have an
established and comprehensive operating capability in The Netherlands which is
expected to simplify the process of assuming control of the manned L11b-A
platform by the L8-D field partners.
A second appraisal/development well is planned to be drilled into the
L8-D Field from the L11b-A platform in the second half of 2009 which, if
successful, will be completed for production (and named L11b-A07). Combined
initial production capacity from the A06 and A07 wells is expected to be
adequate to meet the L11b-A platform design production capacity of 1.2 million
m3/day (45.0 mmscf/d).
M1-A Project (Cirrus 47.5%, operator)
With Cirrus' activity focused on bringing the M7-A and L8-D fields into
production in 2009, the M1-A field will now not be in production before 2010.
Work has continued with respect to fabrication of the subsea tree, control and
high pressure protection systems which are currently 90% completed. However,
offshore installation of the subsea equipment and recompletion and stimulation
of the M1-3 well awaits reaching agreement on satisfactory commercial terms
for accessing the existing export pipeline infrastructure.
The contracted Noble Lynda Bossler drilling rig was released to
Wintershall after completion of the L11-13 well and is currently expected to
return to Cirrus in early July, 2009. On current planning, the rig will first
drill the M7-A development well followed by the second appraisal/development
well on L8-D.
Cirrus President and CEO David Taylor comments; "The successful outcome
of the L11-13 well has been very positive for Cirrus and we now look forward
to bringing both the L8-D and M7-A fields into production before the end of
2009. In addition, we are planning to drill a second well into the L8-D field
which should substantially enhance the production capacity of the field.
Furthermore, Cirrus is fully financed for all the envisaged 2009
activities and has adequate cash resources to complete the initial development
of both the L8-D and M7-A fields. Whilst currently debt free, Cirrus has an
undrawn EUR 30.0 million line with the Royal Bank of Scotland which we
anticipate using for a significant proportion of the forthcoming 2009
development expenditures thus leaving our equity capital available for
additional investment opportunities."
Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and has approximately 77.3 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; 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