Cirrus Energy Corporation - Files Annual Reserve Documents

CALGARY , Nov. 5 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) ("Cirrus") has filed with the securities regulatory authorities in Canada , through the System for Electronic Document Analysis and Retrieval ("SEDAR"), its statement of reserves data for the year ended August 31, 2009 ("Statement of Reserves Data"), which includes the disclosure and reports relating to reserves data and other oil and gas information. In connection with the Statement of Reserves Data, the Company has also filed on SEDAR Form 51-101F2 Report on Reserves Data by GLJ Petroleum Consultants Ltd. and Form 51-101F3 Report of Management and Directors on Reserves Data and Other Information. The entire filings are available for review at www.sedar.com.

    
                             Oil and Gas Reserves
                   Cirrus Working Interest before Royalties
                     Based on forecast Prices and Costs

                           August 31, 2009               August 31, 2008
                           ---------------               ---------------
                      Oil        Gas     boe(1)     Oil        Gas     boe(1)
                      ---        ---     ------     ---        ---     ------
                    (Mbbls)    (MMcf)   (Mbbls)   (Mbbls)    (MMcf)   (Mbbls)
    Proved           1,055     3,471     1,634     1,128         0     1,128
    Probable         1,369    40,345     8,093     1,337    37,846     7,644
                    ---------------------------------------------------------
    Total            2,424    43,816     9,727     2,465    37,846     8,772
                    ---------------------------------------------------------
                    ---------------------------------------------------------

    Note:
    (1) The boe conversion ratio of 6 mcf to 1 bbl used throughout this
        document is based on an energy equivalency conversion method
        primarily applicable at the burner tip and does not represent a value
        equivalency at the wellhead.


                   Net Present Values of Future Net Revenue
                    Discounted at 10% Before Income Taxes
                 (expressed in thousands of Canadian dollars)

                                 Based on forecast prices
                                     at August 31,
                                     -------------
                              2009                   2008
                              ----                   ----
                              (CDN)                  (CDN)
                              -----                  -----
    Proved                  19,391                 15,227
    Probable               171,905                129,649
                      ------------------------------------------
    Total                  191,296                144,875
                      ------------------------------------------
                      ------------------------------------------
    

Contingent Resources

In addition to the reserves identified in the current report, GLJ have determined the remaining Best Estimate contingent resource potential in the Coora Field, onshore Trinidad, to be an additional 2.2 MMbbls of Company working interest oil. This assignment reflects the potential for ultimate recoveries in excess of the Proved plus Probable volumes, but where detailed technical and field work has not yet been completed.

In The Netherlands , GLJ have assigned an additional Best Estimate of the Company's working interest share of contingent resource potential of 10.6 Bcf to acknowledge the potential of a multi-well development case for the M1-A field.

Background on L8-D Field

GLJ have reviewed the L8-D field and given a best estimate gross petroleum initially in place (PIIP) of 323 Bcf (Cirrus interest 82 Bcf) for this gas reservoir. Cirrus has received approval for a field development plan for the south portion of the L8-D field and, in October, 2009 commenced production from the L11b-A06 well. Only those reserves estimated to be recovered from the L11b-A06 well have been booked to date which are 6 Bcf net to Cirrus' interest. As previously announced, a second well, L11b-A07, is currently drilling into the south portion of the L8-D field. Cirrus is currently conducting a full field development study to identify how much of the L8-D gas in place can be economically produced and ultimately considered as reserves.

The assumptions utilized in preparing the PIIP estimates are within standard technical applications currently being utilized by industry in other comparable applications. A recovery project cannot be defined for this volume of discovered PIIP at this time. There is no certainty that it will be commercially viable to produce any portion of the resources.

Cirrus President and CEO, Dave Taylor , comments "We are pleased with the progress being made on our development projects. On a proved plus probable basis, before tax corporate cash flow discounted at 10% increased by 32% to $191.3 million over the 12 month period ending August 31, 2009 . Furthermore, since our year end of August 31, 2009 , which is the effective date of the Reserves Report, we have finished the drilling of the M7-A01X development well and commenced production from the M7-A field on September 14, 2009 . We have also completed the tie-in and upgrades to the L11-B platform that permitted production startup from our L11b-A06 well on October 4, 2009 . In addition, drilling operations are now underway on the L11b-A07 well which is expected to reach total depth in December, 2009. With this new reservoir and production history data, we expect to be able to meaningfully revisit estimated reserves early in 2010".

Cirrus Energy Corporation is an international oil and gas company headquartered in Calgary and currently has approximately 93 million fully diluted shares outstanding.

Forward-Looking Statements

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.
    

%SEDAR: 00021839E

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: [phone], Facsimile: [phone]