Cirrus Wraps Up Preliminary Drilling at Netherlands' L8-D Field

Cirrus announced that its wholly owned subsidiary, Cirrus Energy Nederland B.V., has completed the drilling of the L11-13 appraisal well to a total measured depth of 5,400 meters (true vertical depth "tvd" 4,120 meters). The L11-13 well has been directionally drilled from the L11b-A production platform into the L8-D Field which potentially straddles the L8a, L8b and L11b blocks.

The L8-D field area has been unitized and equity interest partners in the L8-D Unit are Cirrus (25.479%), TAQA (15.000%), DSM Energie B.V. (2.880%), Energy06 Investments B.V. (1.341%), EWE AG (13.400%) and EBN (41.900%). Cirrus is the operator of the L8-D Unit.

The L11-13 well, located offshore in 27 meters of water, was designed to test the southern extension of a large, well defined fault block which contains the L8-D Field. The L8-D Field was discovered by well L8-16x drilled in 2004. The L8-16x well was drill stem tested at rates up to 430,000 Nm3/day (16.1 MMscf/day) of gas from Permian-aged Upper Rotliegend Group sandstone reservoirs at a vertical depth around 3,850 meters. The bottom hole reservoir penetration at L11-13 is located approximately 5.9 kms away from the L8-16x discovery well.

In L11-13, the top of the primary Upper Rotliegend Group target was encountered at 3,845 meters tvd sub-sea with indications of gas during drilling and coring. Two 27 meter cores were cut over two potential reservoir sections. Both potential reservoir sections have been open-hole logged and preliminary petrophysical evaluation indicates the presence of gas in a total of 15.5 meters of net pay in the Upper Rotliegend Group reservoirs with average porosities of 14.5%.

Partners have agreed to flow test the Upper Rotliegend Group reservoirs with results expected in approximately 10 to 15 days.

Cirrus' President, David Taylor, commented, "These preliminary results are encouraging although both flow test data and further geological and geophysical analysis will be required before the economic potential of the L11-13 well and its impact on our understanding of the L8-D Field can be assessed. It is noteworthy that the drilling operations of this deep well went smoothly and were fully on prognosis and budget."