Mira Resources Corp.
TSX VENTURE : MRP

Mira Resources Corp.

March 22, 2011 09:00 ET

Mira Secures Drill Rig and Plans for Well Re-Entry

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 22, 2011) - Mira Resources Corp. (TSX VENTURE:MRP) ("Mira") is pleased to announce that its wholly owned Nigerian subsidiary Equinox TSB Development (Nigeria) Ltd., with the approval of both its partners Associated Oil and Gas Services Limited ("AOGSL") and Dansaki Petroleum Limited ("DPL"), has signed a Rig and Bundled Services Contract with AXXIS Petroconsultants Ltd. ("AXXIS") to acquire one firm well slot and a second optional well slot on the Ben Avon Jack up Rig (the "Rig"). The Rig, owned and operated by KCA Deutag, is currently in Port Gentil, Gabon undergoing refurbishment and is due to arrive in Nigeria around May 25, 2011. It is first contracted by another operator for a single well, where after Mira will take delivery of the Rig. Mira's current best estimate is that we will take delivery of the Rig in early July 2011 to re-enter the Tom Shot Bank 1 well ("TSB 1") and to wire line log and production test the previously identified hydrocarbon bearing zones in this well. 

AXXIS is a Nigerian drilling consultancy company with a solid track record of services in Nigeria. AXXIS has contracted the Rig for 270 days from KCA Deutag and is offering individual rig slots together with all additional support services such as supply vessels, security boats and helicopters. This has significant advantages for Mira as it allows our staff to focus on successful execution of the drilling program.

KCA Deutag is one of the world's leading onshore and offshore drilling and engineering contractors. The Rig is one of three jack-up rigs owned and operated by KCA Deutag. For additional information please visit www.kcadeutag.com.

Mira's President, Thomas Cavanagh states, "I am very pleased to announce that Mira Resources has secured two drilling slots, one firm and one optional slot for the Rig. Our plans are to first re-enter TSB-1, run modern high resolution cased hole logs, and then complete production tests in the selected reservoirs. We anticipate testing 2 or 3 separate reservoirs and if successful will allow Mira to convert these resources into TSX compliant reserves. I am very pleased that within one month of closing the financing that Mira was able to secure the Rig and that we will be able to have a significant part of the planned work program completed within 5 months. This illustrates the commitment Mira has to this project, our partners and investors, and is a significant step forward towards achieving our goal of bringing this field into production in late 2011 or early 2012. The second optional drilling slot will not only give us the ability to optimize the completion design of TSB 1 to maximize production, but will also give the partnership the opportunity, if desired, to drill a second delineation or development well in Tom Shot Bank Field in 2011, thereby potentially significantly increasing the proven resources and the estimated initial production rates. Furthermore, Mira is excited to communicate to our investors, timely operational updates on Tom Shot Bank Field including new opportunities that arise."

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. 

Netherland Sewell & Associates ("NSAI") has assigned gross contingent (P50) resources of 8.7 MMBL and 75 BcF of gas to the area around the TSB-1 well. Over and above the currently assigned contingent resources, Mira has exposure to over 110 MMBL (gross) of additional potential in and around the Tom Shot Bank discovery. Mira has allocated $12.6 million for the re-entry and testing of the TSB-1. 

ON BEHALF OF THE BOARD

Thomas Cavanagh, President 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: 125,366,467

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.

Contact Information

  • Mira Resources Corp.
    Thomas Cavanagh
    President and Director
    (604) 687-7742 or Toll Free: 1-855-687-7742
    (604) 681-0796 (FAX)
    www.miraresourcescorp.com