Cinch Energy Corp.

Cinch Energy Corp.

December 14, 2007 17:15 ET

Cinch Energy Provides Operations Update

CALGARY, ALBERTA--(Marketwire - Dec. 14, 2007) - Cinch Energy Corp. (TSX:CNH) ("Cinch" or the "Company") is pleased to provide an update on its completion and production testing results for the Dawson Area, British Columbia.

Cinch and its partners have completed testing of the Dawson 1-32 Kiskatinaw natural gas discovery in which the Company holds a 36% working interest. The well was flow tested for over a 4 day period at rates up to 10.1 mmcf/d. An offsetting well Dawson 12-28 was drilled and cased for the equivalent Kiskatinaw zone. This well has been perforated and on a very short test encountered both gas and water, which has extended the areal extent of the pool as well as establishing its down dip limits. Further evaluation on this well will take place in the first quarter of 2008 along with additional drilling to further delineate this 3-D seismically defined Kiskatinaw pool.

Additional lands have been acquired at the British Columbia land sales in November and December bringing the Company's total land holdings to 35 sections in the Dawson Area. The Company's working interests vary from 20% to 40% in this multi-zone area. A farmin agreement has also been negotiated in which Cinch will earn a working interest in 3 sections by paying the drilling and completion costs targeting a new Kiskatinaw pool. This well is projected to spud in January, 2008. Cinch is also participating at a 40% working interest in the Kiskatinaw test at Dawson 6-6, which is currently drilling.

The Dawson area is very active with offsetting operators announcing exploration success in the Montney zone at the nearby Tower Area. The Company feels the Montney is highly prospective on its acreage and is closely monitoring this activity and the release of further information.

In Alberta, Cinch is participating in the Chime Area for its 16% working interest in the Talisman Chime 14-26 well, as well as the Encana Cutpick 10-23 well in which it has a 32.5% working interest. These wells are expected to reach total depth in December and early January.

The Musreau gas plant, which processes a majority of the Company's natural gas production in the Chime area, commenced operations again at the end of November after a plant expansion. Consequently, the Company's gas production in the last two weeks is on target to meet Cinch's projected exit rate of 1900 boepd. The production from the Dawson Area is expected to add approximately 400 boepd to the Company's production base during the later part of the first quarter in 2008.

The Dawson Area of British Columbia has provided the Company with a new area of potential growth for its 2008 exploration program. Currently, the economics of natural gas prospects in British Columbia are significantly enhanced relative to Alberta due to a lower royalty rate and with the exploration success that the Company has experienced, an expanded capital program is forecast for this area.

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 assessment of future plans and operations, drilling plans and timing thereof, expected production rates and additions and the expected levels of activities 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 and ability to access sufficient capital from internal and external sources and changes in the regulatory and taxation environment. As a consequence, the Company's actual results may differ materially from those expressed in, or implied by, the forward-looking statements. 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 (, or at the Company's website ( 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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