Cirrus Energy Corporation provides the following operational update regarding ongoing activities in our wholly owned subsidiary, Cirrus Energy Nederland B.V. (Cirrus) in The Netherlands.

L8-D Field (Cirrus 25.5%, operator)

Platform refurbishment was completed in November 2009 which has subsequently allowed for continuous uninterrupted production from the L11b-A06 well. During this period, production performance has steadily declined and is currently approximately 12 MMscf/d gross. Whilst high initial decline rates were expected, performance to date has been under expectation for reasons which are currently not understood. Further data gathering on the well will be undertaken to assist in the evaluation of reservoir performance and to determine the potential for remedial intervention.

L8-D Field Drilling Operations; L11b-A07 well (Cirrus 25.5%, operator)

Sidetrack activities on the A07 well commenced on December 30, 2009 and a new hole was drilled from 1270 mMD to 2066 mMD. Unfortunately, it has proved impossible to run casing in this new hole and drilling operations on the A07 well have been suspended. The Noble Lynda Bossler drilling rig will shortly be released at which time it will be off contract. Total gross costs expended on the A07 well are estimated as €35.0 million (€8.9 million or approximately C$13.8 million net to Cirrus).

Tags: Cirrus Energy