Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

August 13, 2009 16:15 ET

Cinch Energy Corp. Updates Timing of Dawson 6-30 Wabamun Well and Announces Flow-Through Share Private Placement

CALGARY, ALBERTA--(Marketwire - Aug. 13, 2009) - Cinch Energy Corp. ("Cinch" or the "Company") (TSX:CNH) has amended the timing of the drilling of the Dawson 6-30 Wabamun test, which was expected to spud in the first week of August, as stated in the Company's 2009 second quarter press release on August 6, 2009. The drilling rig has been moved to the Dawson 6-30 location but spudding of the well will be delayed until September 1, 2009. On August 6, 2009, the Province of British Columbia announced additional oil and gas incentives effective September 1, 2009, which could impact the potential economic returns generated by the Dawson 6-30 well. These new incentives are dependent on numerous factors such as flow rates and natural gas prices and could potentially be significant to the Company. After taking into consideration these incentives, the Company determined that it was prudent to delay the spudding of the subject well. The Company appreciates the progressive approach of the British Columbia government towards the oil and gas industry in this period of low commodity natural gas prices.

Cinch also announces that it intends to proceed with a non-brokered private placement up to 3,300,000 common shares on a "flow-through" basis ("Flow-Through Shares") at an issue price of $0.85 per Flow-Through Share for maximum aggregate gross proceeds of $2,805,000.

Proceeds from the offering will be used to fund the drilling of the Dawson 6-30 Wabamun well. Cinch will agree to incur Canadian exploration expenses in the amount of the proceeds raised from the issuance of the Flow-Through Shares to be renounced, effective on or before December 31, 2009, to subscribers of the Flow-Through Shares.

The offering is anticipated to close on or about August 26, 2009 and is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange.

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 drilling operations, anticipated impacts of oil and gas incentives in British Columbia, anticipated closing date of the financing, and expectations for anticipated use of proceeds from the financing. 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, delays resulting from or inability to obtain required regulatory approvals and the ability to access sufficient capital from internal and external sources. 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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