Cirrus Energy Nederland farms out Netherlands blocks

Offshore staff

CALGARY, Canada -- Cirrus Energy Nederland B.V., has entered into a three-well farmout agreement with TAQA Offshore B.V. The terms of the agreement are as follows:

Block Q13b
Cirrus will dispose of a net 30% working interest in the Q13b offshore exploration license. The consideration for the disposition takes the form of a farm-in on a 1.8-for-1 basis relating to costs of the first exploration well on block Q13b with TAQA funding a net 54% of the gross well costs and expenses. Upon closing of the farmout and post EBN participation, Cirrus will fund 5.7% of the first exploration well capital costs up to the stated limits and retain a working interest of 28.5% in block Q13b. Cirrus will remain the operator.

Blocks Q10 and Q16b
Cirrus will dispose of a net 30% working interest in both the Q10 and Q16b offshore exploration licenses. The consideration for the disposition takes the form of a farm-in on a 1.8-for-1 basis relating to costs of the first exploration well on either block Q10 or Q16b with TAQA funding a net 54% of the gross well costs and expenses. Upon closing of the farmout and post EBN participation, Cirrus will fund 5.7% of the first exploration well capital costs up to the stated limits and retain a working interest of 28.5% in blocks Q10 and Q16b. Cirrus will remain the operator of both blocks.

L8-D field
Cirrus will dispose of a net 15% working interest in the planned L8-D Unit covering the L8-D field. The consideration for the disposition takes the form of a farm-in on a 1.8-for-1 basis relating to costs of the first appraisal well on the field with TAQA funding a net 27% of the gross well costs and expenses.

10/02/2008