Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

April 19, 2011 17:01 ET

Cinch Energy Corp. Provides Update, Production Exceeds 4,000 boe/d

CALGARY, ALBERTA--(Marketwire - April 19, 2011) -

Cinch Energy Corp. (TSX:CNH) ("Cinch" or the "Company") is pleased to provide the following update.

Dawson Area, North East British Columbia

The facility and pipeline construction project has been completed with nine additional Montney wells tied in. Cinch has a 41.6% working interest in the gathering system, compression and interconnect pipelines and a 20.8% working interest in the refrigeration facility and sales pipeline.

Recent activity on adjacent lands also indicates that there could be significant unbooked potential in the middle and lower Montney intervals on Cinch's working interest land. It is currently anticipated that five gross (1.44 net) additional horizontal Montney wells will be drilled in the last half of 2011 in this area.

Deep Basin Area, West Central Alberta

Three wells, the Kakwa 5-18-61-4 W6M (60% working interest) horizontal Dunvegan liquids rich gas well, the Kakwa 1-26-61-6 W6M (25% working interest) horizontal Falher liquids rich gas well and the Kakwa 12-34-61-6 W6M (20% working interest) vertical well have all been brought on stream.

Oil Opportunities

Cinch has a total of 49 sections of land (100% working interest) on four oil plays in West Central and Northern Alberta. These plays continue to be developed with plans to evaluate a number of opportunities in the second half of 2011.

Corporate

Recent activities have resulted in the Company's production exceeding 4,000 boe/d. Cinch's credit facilities were reviewed in March 2011, and a single facility for $50 MM has been approved. Additional details about Cinch's 2011 plans and activities are shown in our 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 drilling additional Montney wells at Dawson, and evaluating oil opportunities in Alberta 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.

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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