Mirage Energy Ltd.
TSX VENTURE : MGE
PINK SHEETS : MRGYF

Mirage Energy Ltd.

May 07, 2007 12:39 ET

Mirage Energy- 2006 Year End Reserves and Operational Update

CALGARY, ALBERTA--(CCNMatthews - May 7, 2007) - Mirage Energy Ltd. (TSX VENTURE:MGE) (PINK SHEETS:MRGYF) ("Mirage" or the "Company") is pleased to report that in accordance with National Instrument 51-101, DeGolyer and MacNaughton have completed the evaluation of the Company's reserves as of December 31st, 2006. Highlights of this report are as follows:

- Total Proved reserves of 279 M boe

- Total Proved plus probable reserves of 516M boe

- Total proved, probable and possible reserves of 620Mboe



SUMMARY OF RESERVES AS OF DECEMBER 31ST, 2006

Light Oil Heavy Oil Natural Gas NGL
Reserve Category (Mbbls) (Mbbls) (mmscf) (Mbbls)
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Developed Producing 20 96 - -
Developed Non-Producing - 6 330 2
Undeveloped - 100 - -
TOTAL PROVED 20 202 330 2
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Probable 7 248 100 1
TOTAL PROVED + PROBABLE 27 450 430 3
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Possible - 68 - -
TOTAL PROVED+PROBABLE+POSSIBLE 27 518 430 3
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Note:
The aforementioned reserve report does not include the recently drilled and
producing Halfway oil well at Gold Creek.


Mirage has participated in the drilling of 35 wells in 2006 and an additional 5 wells to date in 2007. The Company is currently producing 154 Boepd which consists of 67 bpd of heavy oil, 50 bpd light oil and 220 mcfd gas. The Company has an additional production capability of 78 boepd, (23 bpd oil and 330 mcfd gas) which is waiting on facility optimizations and tie-ins.

At Gold Creek, Alberta, battery construction was completed and the Halfway oil well (Mirage W.I. 17%) was brought on production by mid April at an average production rate of 85 bopd. Mirage and its partners have identified two development locations on 3D for this 640 acre prospect.

At the Gold Creek 4-26-68-6W6M Halfway gas well (W.I. 10%), pipeline and facility construction was completed April 19th, 2007. The well is presently producing in excess of 700 mcfd. The compression facility is presently being optimized and production is expected to exceed 1mmcfd.

At Simonette, Alberta, Mirage participated in a Cadotte gas well (W.I. 15%) that is presently producing 1 mmscfd. This well has the capability to produce over 3 mmscfd and is presently limited by pipeline restrictions. The operator is currently evaluating other tie-in alternatives to resolve these restrictions.

Mirage is presently planning to drill an additional 10 development wells (3.2 net wells) in 2007, consisting of 9 heavy oil wells and 1 light oil well. This drilling program is anticipated to have a significant positive impact on the Company's production base.

Mirage has filed the form 51-101F1, 51-101F2 and 51-101F3 disclosures relating to National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities, concerning Mirage's oil and gas reserves as at December 31, 2006. A copy of this document may be obtained at www.sedar.com.

Mirage is a junior oil and gas company focused on the exploration and development of oil and gas in western Canada.

READER ADVISORY

Statements in this press release may contain forward-looking statements including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve 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 underlying risks of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses, adequate available financing and health, safety and environmental factors), commodity price and exchange rate fluctuation and uncertainties.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mirage Energy Ltd.
    Rene LaPrade
    President and CEO
    (403) 232-1359
    Email: rene@mirage-energy.ca
    or
    Mirage Energy Ltd.
    Peter J. Boswell
    Chairman
    (403) 232-1359
    Email: petebos@telusplanet.net
    or
    Mirage Energy Ltd.
    800, 510 - 5th Street S.W.
    Calgary, Alberta T2P 3S2