Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

November 23, 2009 08:00 ET

Cinch Energy Corp. Announces a Significant Natural Gas Discovery

CALGARY, ALBERTA--(Marketwire - Nov. 23, 2009) - Cinch Energy Corp. (TSX:CNH) ("Cinch" or the "Company") announces a significant Wabamun gas discovery in the Dawson area of British Columbia. The Cinch operated Dawson well 6- 30-80-15W6M drilled to a total depth of 3,673 meters was completed with the drilling rig and flowed at rates over 20 mmcf/d (gross) during an initial 3 hour flow period after acidization. Pressure recorders have been installed and the Company intends to conduct flow tests to further evaluate well productivity.

Initial indications are that the gas has a low acid content with less than 15 parts per million H2S and 5% CO2, consistent with other Wabamun production in the area, which should allow the gas to be brought on stream with relatively simple conventional facilities. Tie-in options and timing are currently being evaluated.

Based on 3D seismic there may be 3 additional locations on this feature and current plans are to move the drilling rig to 7-25-80-16W6M once completion operations are finished and the new lease is constructed. Cinch has a 65% working interest and is the operator of this well and follow up locations.

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

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 plans for future testing of the well, the method of bringing the Dawson 6-30 well on stream, the number of additional locations on the same feature as the Dawson 6-30 well, 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 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.

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