CALGARY, July 22 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) is pleased to announce 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 appraisal well has been successfully drilled from the M07-A production platform to a total measured depth of 4,125 meters (true vertical depth 2,931 meters sub-sea). The well was spudded on 8th June, 2010 by the Noble Lynda Bossler jackup drilling rig and reached total depth on July 21, 2010 on schedule and budget. As prognosed, the well encountered thickened Jurassic sandstones in a down dip location from their prior penetration in well M07-05ST drilled in 1996. Gas shows were encountered during coring and subsequent log interpretation indicates the reservoir target appears to be gas bearing.
The well will now be cased and tested prior to being completed and tied-in as a production well on the M07-A platform. This process is expected to take approximately 14 days at which time the rig will be released.
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%).
M07-A Field (Cirrus 42.75%, operator)
Following an extended period of annual maintenance at the L09-FF processing platform, production from the M07-A field has recommenced at a contractually increased gross rate of 31.7 MMscf/d (Cirrus net 13.6 MMscf/d). It is expected that this rate can be maintained into the first quarter of calendar 2011 before natural decline of the Triassic reservoir takes effect. Assuming the M07-07 well tests satisfactorily, production capacity from this new well is expected to further extend the production plateau of the M07-A platform and facilities.
Cirrus' President, David Taylor, comments: "The preliminary results of the M07-07 well are encouraging and appear to be within the pre-drill range of expectations although testing and subsequent production is required to establish the commercial significance of the well. It should be noted that the Jurassic reservoir encountered in M07-07 is a separate pool from the developed Triassic reservoir with the significant benefit of sharing the same existing production and export infrastructure."
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