Cirrus Energy Releases Annual Financial and Reserve Documents
Cirrus Energy Corporation has filed its Consolidated Financial Statements and Notes, Management Discussion and Analysis, Statement of Reserves Data, Report of Independent Qualified Reserves Evaluator and the related Report of Management and Directors with securities regulatory authorities in Canada for the year ended August 31, 2007.
These documents are available on the System for Electronic Document Analysis and Retrieval at www.sedar.com. The Reserves and Contingent Resources were evaluated by GLJ Petroleum Consultants Ltd. ("GLJ") effective August 31, 2007. Select data follows.
The Future Net Revenue values for 2006 (for both forecast and constant price cases) included an estimated cash receipt of USD $17.9 million related to the expected participation of Energie Beheer Nederlands BV ("EBN") in the development of the M1-A field in The Netherlands and EBN's corresponding advance of a portion of the historical costs which were incurred on the license by other parties. Following EBN's election to participate in July, 2007, the actual cash receipt of euro19.0 million (approximately CDN$25.5 million net to Cirrus after third party charges) was received from EBN in August, 2007 and has been reported in the working capital position of the Company at August 31, 2007.
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 3,600 Mbbls 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 10,600 MMcf to acknowledge the potential of a multi-well development case for the M1-A field.