Mirage Energy Ltd.
TSX VENTURE : MGE
PINK SHEETS : MRGYF

Mirage Energy Ltd.

November 14, 2007 18:34 ET

Mirage Energy Announces Operational Update and Cancellation of Private Placement

CALGARY, ALBERTA--(Marketwire - Nov. 14, 2007) -

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

Mirage Energy Ltd. (TSX VENTURE:MGE) (PINK SHEETS:MRGYF) ("Mirage" or the "Company") has entered into a three well farmout agreement with an industry partner. Under the agreement, 2 wells will be drilled at Hayter, Alberta prior to November 30th, 2007. The Farmee will pay 100% of all costs to earn 60%, with no payout. Mirage will retain a 20% working interest in this farmout arrangement. The Hayter property has two additional option wells that can be drilled based on the success of the commitment wells on the same terms.

Mirage has also farmed out a well at Lloydminster, Alberta with an industry partner. Under this agreement, one well will be drilled at Lloydminister prior to November 30th, 2007 with the Farmee paying 100% of all costs to earn 65%, with no payout. Mirage will retain an 8.75% working interest in this farmout arrangement. Additional option wells can be drilled at Lloydminster based on success, for the same terms.

Mirage with its partners is presently recompleting one well at Lloydminister, Alberta for Sparky oil production. The Company is also evaluating the potential to drill one well at the Lloydminster property this winter. The aforementioned farmout arrangements, drilling and recompletion activities will have a significant impact the Company's production and reserve base. Mirage has recently completed the tie-in of the Tangent area well solution gas and the Company is presently producing 24 bpd light oil, 41 bpd heavy oil and 107 mcfd gas. The Company's Simonette property (15% working interest) is shut-in while negotiations and tie-in alternatives with a 3rd party gas processor continue. The Simonette gas well is capable of producing in excess of 400 mcfd gas net to Mirage.

Mirage has also decided to not to proceed with a non-brokered private placement originally announced on October 29, 2007, of up to 8,000,000 common shares issued on a "flow-through" basis at a price of $0.22 per flow-through share.
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.

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