Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

April 05, 2010 17:00 ET

Cinch Energy Corp. Announces Wabamun Well Results

CALGARY, ALBERTA--(Marketwire - April 5, 2010) - Cinch Energy Corp. (TSX:CNH) ("Cinch" or the "Company") announces that it has completed and tested another Wabamun gas well. The Cinch operated Dawson 7-25-80-16 W6M well (65% working interest) was drilled to a total depth of 3,825 meters. Based on drilling, core and log analysis the well has 40 meters of net pay in the Wabamun zone. During a 64 hour flow test the well produced gas at rates between 7 and 12 mmcf/d with final flowing tubing pressures of over 2,500 psi. After producing the maximum permitted test volumes, the well was shut in with pressure recorders in the well to allow for a build up analysis. This well is located approximately one mile west of the successful 6-30-80-15 W6M well which tested at similar rates, pressures and gas composition.

The 6-30-80-15 W6M well is currently being tied in to an existing gathering system in the area and, subject to final regulatory approval, is scheduled to be brought on at a restricted rate before the end of April. The new 7-25-80-16 W6M well is expected to be tied in during the fourth quarter in conjunction with the Montney development program. Assuming each well produces at a long term rate of 5 mmcf/d, with a 65% working interest, Cinch expects over 1,000 boe/d of net Wabamun production will be brought on stream in 2010.

Cinch now has an average working interest of approximately 57% in 73 sections of lands with Wabamun rights in the Dawson area. Plans and timing for future drilling and shooting additional 3D seismic are currently being developed.

Cinch Energy Corp. is a junior oil and gas company with core assets in West Central Alberta and North East British Columbia. Cinch plans to grow through a combination of exploration and development drilling combined with strategic property and corporate acquisitions to become a leading intermediate sized producer.

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 timing of completion and tie in operations and tests, commencement of production, additional locations, and future drilling plans of additional Wabamun locations 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 release, 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.

Barrel of Oil Equivalency

Natural gas volumes 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 six mcf to one 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.

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