Cirrus Energy Corporation announces UK North Sea acquisition

CALGARY, Jun 8, 2009 (Canada NewsWire via COMTEX) -- ERGY | Quote | Chart | News | PowerRating -- Cirrus Energy Corporation (TSXV: CYR | Quote | Chart | News | PowerRating) ("Cirrus") is pleased to announce that it has entered into a definitive share purchase agreement for the acquisition of Wilderness Energy UK Limited ("WEUK") which will become a fully-owned subsidiary of Cirrus. The acquisition is expected to close on or about June 16, subject to regulatory approval. The consideration for the acquisition is 500,000 freely tradable ordinary shares of Cirrus.

WEUK is a wholly owned subsidiary of Wilderness Energy Corporation, a private Canadian junior exploration and production Company. WEUK was formed in 2005 to acquire prospective acreage in the UK North Sea and currently holds non-operated interests ranging from 25% to 50% in eight exploration licences in the central and northern North Sea and one exploration licence in the southern North Sea. Gross acreage under licence is 1972 km2 (800 km2 net) and there are currently one gas and fifteen medium to heavy oil prospects and leads identified. The licences expire in 2012 or later.

All of the licences were jointly acquired by WEUK and Silverstone CNS Limited ("Silverstone") who operates all of the licences. There are no firm well commitments and ongoing work commitments over the next two years are estimated to total GBP 700,000 net to WEUK which includes lease rentals and geological and geophysical work.

Cirrus President and CEO David Taylor comments; "This acquisition provides an attractive low cost entry into the UK North Sea. The licences contain significant exploration potential particularly for heavy oil which has recently benefited from improved fiscal terms. As there are no firm drilling commitments in the acquired UK licences, Cirrus remains fully in control of its investment decisions but at the same time gains exposure to significant exploration upside and further opportunities in an additional attractive low-risk jurisdiction. This acquisition expands and broadens the future opportunity portfolio for Cirrus without diluting its focus on the exploration and development of its operated assets in the Dutch North Sea."

Cirrus Energy Corporation is an international oil and gas company headquartered in Calgary and will have approximately 78.9 million fully diluted common shares outstanding upon closing of this acquisition.

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.

    <<
    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    >>

%SEDAR: 00021839E

SOURCE: Cirrus Energy Corporation

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: (403) 216-5030, Facsimile: (403) 265-9530

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index