Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

February 07, 2011 21:00 ET

Cinch Energy Corp. Announces a Successful Dunvegan Liquids Rich Gas Well Test

CALGARY, ALBERTA--(Marketwire - Feb. 7, 2011) - Cinch Energy Corp. ("Cinch" or the "Company") (TSX:CNH) announces that it has completed and flow tested a liquids rich Dunvegan horizontal gas well. The Cinch operated 5-18-61-4 W6M well (60% working interest) that was drilled to total depth in January 2011, was completed with a 15 stage fracture stimulation in early February 2011. The well was tested over a 47 hour period at gas rates in excess of 8.5 mmcf/d (gross) before being shut-in once the maximum volumes under the flare permit were reached. Based on vertical well production in the same pool, this well is expected to produce natural gas liquids at a rate between 40 and 50 bbl/mmcf of gas. This well is located next to existing facilities in a Cinch operated area and is expected to be brought on stream at an initial restricted rate of 5 mmcf/d (gross) during February 2011, subject to availability on the pipeline.

Cinch Energy Corp. is a junior oil and gas company with core assets in West Central Alberta and North East British Columbia. In addition to the current inventory of natural gas opportunities, Cinch continues to develop a number of oil prospects to better balance its gas and liquids mix. Additional details about Cinch's 2011 plans and activities are shown in our February 2011 corporate presentation on our website at www.cinchenergy.com.

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 expected timing of bringing the Cinch operated 5-18 well on stream and anticipated production, expected production rate of natural gas liquids and future development plans 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, the ability to access sufficient capital from internal and external sources, and changes in the regulatory and taxation environment. Consequently, the Company's actual results may differ materially from those expressed in, or implied by, the forward-looking statements.

Forward-looking statements or information is based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the ability of the Company to obtain equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which the Company has an interest to operate the field in a safe, efficient and effective manner; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through development or exploration; future oil and natural gas prices; interest rates; the regulatory framework regarding royalties; and the ability of the Company to successfully market its oil and natural gas products. 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.

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