Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

July 17, 2007 23:59 ET

Cinch Energy Corp. Provides Operational Update

CALGARY, ALBERTA--(Marketwire - July 17, 2007) - Cinch Energy Corp. (TSX:CNH) ("Cinch" or the "Company") advises that it has drilled its 09-36-60-06W6M Cutpick well, in which it has a 45% working interest, to a total depth of 3334m and has cased the well to total depth to evaluate potential gas reservoirs in several zones. Appraisal of these zones will be undertaken as soon as a service rig is available and surface conditions permit.

Cinch will next move the rig from the above well to the Kakwa 10-18-61-4W6M location, in which the Company has a 100% working interest. This well is anticipated to spud as soon as surface conditions permit. Also in Kakwa, a non-operated well at Kakwa 14-23-61-5W6M, in which the Company has a 12.5% working interest, is expected to spud next week.

At Dawson B.C., the non-operated Dawson 1-32 Kiskatinaw test, in which the Company has a 36% working interest, was spudded last week.

Current net debt is approximately $20 million and the Company's credit facility is $33 million.

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 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.

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, drilling plans and timing of well evaluations 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, inability to retain drilling rigs and other services, 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. As a consequence, the Company's actual results may differ materially from those expressed in, or implied by, the forward-looking statements. 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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