Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

April 10, 2006 23:59 ET

Cinch Energy Announces Acquisition of Additional Interests in the Chime Area

CALGARY--(CCNMatthews - April 10) - Cinch Energy Corp. ("Cinch" or "the Company") is pleased to announce that it has entered into two agreements, subject to certain conditions including completion of satisfactory due diligence, to acquire additional interests in the Chime area (Twp. 60 Rge. 5&6W6M) effective April 1, 2006 for approximately $10.75 million. The acquisitions are to be financed from the Company's credit facilities.

Cinch is acquiring working interests ranging from approximately 21.0% to 43.9% in 7 producing gas wells and 18% to 40.0% in 35,200 gross acres of undeveloped land. The transactions add approximately 140 boepd of production to the Company and increase Cinch's operated interest to approximately 65% in the Chime area. It is expected that these transactions will enhance the Company's flexibility in joint venture arrangements and project timing in the Chime area. Cinch has budgeted for 3 wells to be drilled on the Chime block during 2006 at working interests ranging from approximately 30 to 45%.

Cinch has also entered into a one year contract on a drilling rig, which has capabilities to drill to 4000m, so that the Company can more easily execute its upcoming summer and winter drilling program.

Currently, Cinch is participating in two wells which are drilling in the Kakwa area. Cinch will be casing the Kakwa 1-12 (net 45%) well as a potential gas well. The Company also re-entered a suspended well in the Kakwa area in which it has a 25% interest. This well was flow tested at a stabilized rate of 2 mmcf/d. It is expected that this well will be tied in for production during the summer months.

Barrel of Oil Equivalency

Natural gas reserves and volumes contained herein are converted to barrels of oil equivalent (BOE) on the basis of six thousand cubic feet (mcf) of gas to one barrel (bbl) of oil. The term "barrels of oil equivalent" may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward Looking Statements

Statements throughout this release that are not historical facts may be considered to be "forward looking statements". These forward looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the Company's objectives, goals, or future plans are forward looking statements, including management's assessment of future plans and operations, wells to be drilled, timing of drilling and tie in of wells, productive capacity, production estimates, capital expenditures and the timing thereof, and completion of the acquisition and its effect on the Company. Since forward looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to any number of factors, including risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals, the ability to access sufficient capital from internal and external sources, and whether the acquisition will be completed. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results is included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at the Company's website (www.cinchenergy.com). Furthermore, the forward looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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