Mirage Energy Ltd.
TSX VENTURE : MGE

Mirage Energy Ltd.

January 12, 2007 13:03 ET

Mirage Energy Announces Gas Well Discoveries and Drilling Plans

CALGARY, ALBERTA--(CCNMatthews - Jan. 12, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.

Mirage Energy Ltd. (TSX VENTURE:MGE) ("Mirage" or the "Company") is pleased to announce results on two recently drilled deep gas wells.

In the Simonette area of Alberta, Mirage participated for a 15% working interest in a well that was drilled and completed in the Cadotte formation. The well was flow tested and indicated significant gas deliverability with a stabilized gas flow rate of 2 mmscfd with only a 2% drawdown of the zones productive capability. The well is presently being tied-in and should be on production within the next 60 days.

The second well was drilled in the Gold Creek area of Alberta and cased as a potential Halfway gas well. This well is presently being completed, Mirage has a 17 percent working interest in this well. At the Gold Creek 4-26-66-6W6M Halfway gas well (Working interest 10%), the operator has a third party gas contract in place and has surveyed a 1.6 km pipeline for the tie-in. The pipeline right of way is presently awaiting regulatory approvals and the well is anticipated to be tied in and on production in March of 2007.

Mirage also announces that it plans to participate in a 20 well heavy oil drilling program in Lloydminster, Alberta, and Buzzard, Saskatchewan. Mirage will participate in this program at working interests ranging from 20% to 50%. Mirage has an inventory of 39 drilling locations to be drilled in 2007.

Mirage has participated in 35 wells in 2006 and is currently producing 93 bopd heavy oil and 17 bopd light oil. The Company has 100 boepd per day (540 mcfd gas and 10 bopd) waiting on surface equipment and tie-ins.

Mirage is a junior oil and gas company focused on the exploration and development of oil and gas in western Canada.

READER ADVISORY

Statements in this press release may contain forward-looking statements including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses, adequate available financing and health, safety and environmental factors), commodity price and exchange rate fluctuation and uncertainties.

Note: Boe means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

23,282,417 Common Shares Issued

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mirage Energy Ltd.
    Rene LaPrade
    President and CEO
    (403) 232-1359
    Email: rene@mirage-energy.ca
    or
    Mirage Energy Ltd.
    Peter J. Boswell
    Chairman
    (403) 232-1359
    Email: petebos@telusplanet.net
    or
    Mirage Energy Ltd.
    800, 510 - 5th Street S.W.
    Calgary, Alberta T2P 3S2