Mira Resources Corp.

Mira Resources Corp.

August 27, 2012 09:30 ET

Mira Announces the Completion of the Independent Discovered Resource Assessment for the Tom Shot Bank Field With a 259% Growth From the Previous 2010 Resource Assessment

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2012) - Mira Resources Corp. (TSX VENTURE:MRP) ("Mira") and its fully owned subsidiary Equinox TSB Development (Nigeria) Limited are very pleased to announce the completion of the RPS Energy Independent Resource Assessment for the Tom Shot Bank Field. The Discovered Contingent Resources have grown 259% from the P 50 (2C) estimate in the previous 2010 NSAI Certified Contingent Resources (8.67 MMstb) completed prior to the reentry of TSB 1 to 22.44 MMstb after the re-entry and testing of TSB 1 in 2011.

RPS Energy Reports the following Gross (100%) Contingent Resources for five of the key reservoirs:

Reservoir 1C 2C 3C
Reservoir U 3.0 0.97 MMstb 1.74 MMstb 2.84 MMstb
Reservoir U 4.0 0.08 MMstb 0.46 MMstb 1.19 MMstb
Reservoir U 7.0 3.90 MMstb 14.64 MMstb 41.00 MMstb
Reservoir U 8.0 0.75 MMstb 3.02 MMstb 7.96 MMstb
Reservoir U 9.0 1.02 MMstb 2.56 MMstb 4.66 MMstb
TOTAL 6.72 MMstb 22.44 MMstb 57.65 MMstb

and with additional Prospective Resources in the U 9.0 of:

Reservoir 1C 2C 3C GPoS
Reservoir U 9.0 2.09 MMstb 6.53 MMstb 14.37 MMstb 76 %

Mohammed Asibelua, Chairman of Mira states, "We are pleased to announce the completion of the work independently completed by RPS Energy documenting the significant growth in Discovered Contingent and Prospective Resources at Tom Shot Bank Field. We are continuing with the undiscovered Prospective Resource Assessment in Nigeria where we will have more input on the work status and timing. We would like to thank RPS Energy for their excellent work and advice throughout the project."

Mira's Board of Directors, in response to several expressions of interests, has established a special committee with a mandate, in consultation with First Energy Capital, to solicit, review and consider strategic alternatives and to make recommendations to the Board as to whether any proposed transactions are in the best interests of the Corporation and its shareholders. We are now very excited to commence this process with First Energy Capital. We anticipate that our data room will be opened within the next ten days. Additionally, we are advancing our discussions with several Nigerian Banks and other project financing avenues through debt for the development of this project for eventual production in Mid 2013. All permitting necessary to drill TSB 3 is underway; we anticipate having all necessary permits and technical work completed in the early portions of the 4th Quarter.

TSB Field is located within Oil Prospecting License 276 ("OPL 276") which is adjacent to the Abana Field in Oil Mining License 114 and due north of Addax Petroleum Corp. in Oil Mining License 123 ("OML 123"). Addax Petroleum Corp. is producing almost 50,000 BOPD from multiple fields within OML 123. TSB Field was discovered by Shell Petroleum in 1980 and encountered 425 Gross Feet of hydrocarbon pay, 57 net feet of gas and 83 net feet of oil proven pay with another possible 111 net feet of oil and 29 net feet of gas pay in reservoirs which Shell Petroleum interpreted as probable laminated reservoirs.

DEFINITIONS: Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status. The key remaining issues with converting these to Reserves are an approved field development plan, finalization of the export agreements and proof of sufficient funding.

Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.


Significant Positive and Negative Factors Relevant to the Resources Estimates: This news release contains forward looking information including, but not limited to, estimated resources. The forward looking information is based on current expectations and is subject to 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 following:

Risks associated with ever making a discovery: The estimation of prospective resource volumes for high-risk and poorly calibrated basins can be subject to large variation from the introduction of new information. The estimates presented herein are based on all of the information available; however, new data or information may have a material effect on the resource assessment values. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that the discovery will be commercially viable to produce any portion of the resources. Given that most of the resources in the portfolio are in leads that require additional data to fully define their potential it is likely that significant changes to the resource estimates will occur with the incorporation of additional data and information.

Risk Associated with the Estimates: In the event of a discovery, basic reservoir parameters, such as porosity, net hydrocarbon pay thickness, fluid composition and water saturation, may vary from those assumed by RPS affecting the volume of hydrocarbon estimated to be present. Other factors such as the reservoir pressure, density and viscosity of the oil and solution gas/oil ratio will affect the volume of oil that can be recovered. Additional reservoir parameters such as permeability, the presence or absence of water drive and the specific mineralogy of the reservoir rock may affect the efficiency of the recovery process. Recovery of the resources may also be affected by well performance, reliability of production and process facilities, the availability and quality of source water for enhanced recovery processes and availability of fuel gas. There is no certainty that certain mineral interests are not affected by ownership considerations that have not yet come to light.

Substantial Capital Requirements: Mira expects to make substantial capital expenditures for exploration, development and production of oil and gas reserves in the future. The Company's ability to access the equity or debt markets in the future may be affected by any prolonged market instability. The inability to access the equity or debt markets for sufficient capital, at acceptable terms and within required time frames, could have a material adverse effect on the Company's financial condition, results of operations and prospects.

Ability to Execute Exploration and Development Program: It may not always be possible for Mira to execute its exploration and development strategies in the manner in which the Company considers optimal. Execution of exploration and development strategies is dependent upon the political and security climate in the host countries where the Company operates. The Company's exploration and development programs in Nigeria may involve the need to obtain approvals from relevant authorities who may require conditions to be satisfied or the exercise of discretion by the relevant authorities. It may not be possible for such conditions to be satisfied.

Absence of a Formal Development Plan including Required Funding: There is no certainty the Company will prepare and approve a development plan for any portion of the contingent resources or that the Company will be successful in funding any development should such a plan be prepared. General market conditions, the sufficiency of such a development plan and the outlook regarding oil and gas prices are some factors that will influence the availability of funding.

Additional Risks: Additional risks associated with the estimate of the prospective and contingent resources include risks associated with the oil and gas industry generally (i.e. financing; operational risks in exploration, development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections related to production; costs and expenses; health, safety, security and environmental risks; and the uncertainty of resource estimates), drilling equipment availability and efficiency, the ability to attract and retain key personnel, the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with dealing with governments and obtaining regulatory approvals, and the risk associated with international activities.


Johnathan More, CEO and Director

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual events and results to differ materially from Mira's expectations include risks related to the exploration stage of Mira's project; market fluctuations in prices for securities of exploration stage companies; and uncertainties about the availability of additional financing.

Issued and Outstanding: 156,965,926

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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