Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

November 12, 2009 16:01 ET

Cinch Energy Corp. Announces Management Changes and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Nov. 12, 2009) - Cinch Energy Corp. (TSX:CNH) ("Cinch" or "Company") today announced that Sid Dykstra will be joining the Company as Chief Executive Officer effective immediately. John W. Elick, Cinch's current Chief Executive Officer and Chairman will be retiring from day to day management but will continue to provide leadership to the organization as non executive Chairman of the Board of Directors. George Ongyerth will continue in his role as President.

Mr. Dykstra was formerly the President and Chief Executive Officer of OPTI Canada Inc.. Prior thereto, Mr. Dykstra was the President of Hunt Oil Company of Canada Inc., which acquired Newport Petroleum Corporation. Mr. Dykstra was a co-founder of Newport and became President and Chief Operating Officer as that company grew from a private start up to a 30,000 boe/d public intermediate producer with operations in all three western provinces.

"Having worked with Sid over the past five years on the Board of Cinch, I am pleased to hand the reins to a strong, experienced leader," said John Elick. "As the founder of Cinch, I am proud of our accomplishments to date, and as the industry goes though another cycle, Cinch is well positioned to take advantage of the many opportunities for growth. Sid and George will make a strong management team as we look forward to building Cinch into a leading, intermediate sized producer."

Operational Update

In British Columbia, the Company has been active on its Dawson property and is currently drilling the Dawson 6-30 Wabamun test (65% working interest) which was spudded on September 1, 2009. This well is now expected to reach total depth of 3,700 metres in mid November and is expected to be completed using the drilling rig. A successful result in this well sets up additional Wabamun locations on Cinch lands.

As previously reported, a development Kiskatinaw well was drilled and completed at Dawson 1-33 (36% working interest). It is expected that this well will commence production in mid December at a rate of 7.8 mmcf/d. Based on this result, two additional development locations have been identified in this pool which may be drilled in 2010.

Cinch plans to participate in two non-operated horizontal Montney wells to be drilled during the fourth quarter of 2009 (26% working interest). Cinch is currently reviewing its plans to drill a Company-operated horizontal Montney well offsetting this activity in the first quarter of 2010.

In addition, Cinch is currently finalizing a transaction that will result in the acquisition of additional working interests in the Dawson area. Upon closing of this transaction, Cinch will continue to operate and hold an 82.5% working interest in a section of land that offsets the proposed horizontal drilling activity discussed above.

With extensive land holdings in British Columbia and the deep basin area of Alberta, Cinch is positioned to pursue numerous drilling opportunities and is beginning to plan its 2010 capital program.

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, including management's assessment of future plans and operations, management changes and the timing thereof, drilling plans including the timing of drilling wells and their locations, expected initial production rates from the new well and the acquisition of additional interests in the Dawson area may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, failure to complete and/or realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources and changes in the regulatory and taxation environment. Consequently, the Company's actual results may differ materially from those expressed in, or implied by, the forward-looking statements.
Forward-looking statements or information is based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the ability of the Company to obtain equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which the Company has an interest to operate the field in a safe, efficient and effective manner; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through development of exploration; future oil and natural gas prices; interest rates; the regulatory framework regarding royalties; and the ability of the Company to successfully market its oil and natural gas products. 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 are included elsewhere herein and in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), or at the Company's website (www.cinchenergy.com). Furthermore, the forward-looking statements contained in this release are made as at the date of this 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.

Contact Information

  • Cinch Energy Corp.
    Sid W. Dykstra
    Chief Executive Officer
    (403) 693-0090
    or
    Cinch Energy Corp.
    George Ongyerth
    President
    (403) 693-0090
    or
    Cinch Energy Corp.
    John W. Elick
    Chairman
    (403) 693-0090
    www.cinchenergy.com