Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

September 10, 2007 23:59 ET

Cinch Energy Provides Operations Update

CALGARY, ALBERTA--(Marketwire - Sept. 10) - Cinch Energy Corp. (TSX:CNH) ("Cinch" or "the Company") is pleased to provide an update on its operating activities.

Cinch has completed testing four wells, one in each of its core areas of Musreau, Kakwa, Chime, and Dawson. The Company estimates that these four wells will initially add approximately 1100 BOE/d of net production to the Company's current production base of 1250 BOE/d. It is anticipated, on the basis that the tie-ins proceed on schedule, that these wells will commence production between October 1st and year-end, and hence the Company is projecting that it will meet its 1900 BOE/d exit rate. As a result of the positive test results from these well completions, the Company has added a total of 10 seismically defined locations to the Company's capital program for 2007 and 2008.

The Company remains active in its core areas and has budgeted to commence drilling an additional 8 wells before year end.

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, future production rates, expected production increases and the timing thereof, drilling, completion and tie-in plans and the timing thereof, and the expected levels of activities 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. 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 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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