Mirage Energy Ltd.

Mirage Energy Ltd.

November 30, 2007 22:41 ET

Mirage Energy Releases Third Quarter Results

CALGARY, ALBERTA--(Marketwire - Nov. 30, 2007) - Mirage Energy Ltd. ("Mirage" or the "Company") (TSX VENTURE:MGE)(PINK SHEETS:MRGYF) is pleased to announce its financials and operating results for the quarter ending September 30th, 2007.

Gross Revenue for the period totaled $339,052 compared to $28,854 for the same period last year, an increase of $310,198.

At September 30th, 2007, the Company reported a working capital deficiency of $1,003,865 compared to $673,626 reported in the second quarter. Included in the working capital deficiency is the Company's banking credit facility of $925,000. Mirage will be disposing of non-core properties to increase its working capital position.

The Company had a loss of $280,110 for three months ending September 30th, 2007. Adjusting the net loss for non-cash items of depletion, depreciation, accretion and stock based compensation, the Company had a net loss of $86,261 for three months ending September 30th, 2007. Management of the Company has reduced its salaries by 40% to enhance profitability.

For the three month period ending September 30th, 2007, the Company had capital expenditures of $487,396 of which $361,277 was spent on drilling and completions, $97,503 on well equipment and facilities and $28,616 on land and other costs.


During the third quarter of 2007, Mirage participated in the drilling of two heavy oil wells at Buzzard, Saskatchewan (10% working interest). Both wells were cased with one well being completed and on production in October of 2007.

Production sales for the third quarter averaged 72 boepd, consisting of 41 bpd heavy oil, 26 bpd light oil and 28 mcfd gas.

During October, 2007, the Gold Creek 4-26 well was stimulated and the compressor was repaired. The well is currently producing over 500 mcfd (50 mcfd net to Mirage) and represents a 100% increase in post stimulation production on this well.

In October of 2007, Mirage added 53 mcfd net gas production with the tie-in of the Tangent 16-33 solution gas.

Mirage is presently producing 86 boepd, consisting of 43 bopd heavy oil, 26 bpd light oil and 100 mcfd gas.

Third party transportation and processing issues with the Simonette well have now been resolved and the well is expected to come on production prior to year end at 1100 mcfd (165 mcfd net to Mirage). The Company has an additional production capability of 43 boepd (15 bpd oil and 165 mcfd gas) which is waiting on well recompletions and tie-ins for a total company production capability of 127 boepd.

The Company has recently farmed out three locations (2 test wells in Hayter and 1 test well in Lloydminister). To date, the two heavy oil wells in the Hayter area (20% working interest) have been drilled. Both of these wells have been cased and are presently awaiting completion operations. Both wells are expected to be on production prior to year end.

The aforementioned farmout arrangements, drilling and recompletion activities will have a significant impact on the Company's production and reserve base.

At Bashaw, the Company acquired 320 acres of land (working interest 50%) in a high impact Nisku oil prospect. This prospect has potential oil reserves in excess of 500,000 barrels.

Mirage will continue to add prospect inventory through land acquisitions.

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


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.

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

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