Mirage Energy Ltd.
TSX VENTURE : MGE

Mirage Energy Ltd.

November 10, 2006 17:12 ET

Mirage Energy Announces Gas Well at Gold Creek and Operational Update

CALGARY, ALBERTA--(CCNMatthews - Nov. 10, 2006) -

Not for distribution to U.S. newswire services or for dissemination in the United States of America

Mirage Energy Ltd. (TSX VENTURE:MGE) ("Mirage" or the "Company") is pleased to announce results on the Sahara Gold Creek 4-26-068-06W6M gas well. The well has been successfully completed in the Halfway zone with a flow test in excess of 2 mmscfd and is shut-in for pressure buildup. An additional uphole gas zone has been completed in the well and is presently being evaluated. Mirage has a 10% working interest ("WI") in this well.

Mirage has participated to date in the drilling of 19 heavy oil wells, 6 in Lloydminster, Alberta, and 13 in Buzzard, Saskatchewan at an average working interest of 27%. Fourteen of these wells are now on production with the remaining 5 wells awaiting completion and surface equipment. Mirage anticipates drilling 4 additional wells (1.1 wells net) in this area before year-end. At Hayter, Alberta, Mirage will participate at a 50% working interest in the drilling of 3 McLaren oil wells. These wells are being surveyed and will be drilled in the next two months.

Mirage is participating in the drilling of 9 high impact wells in Alberta. At Evi, Mirage participated at a 25% working interest in the drilling of a Granite Wash oil well that is presently being completed and evaluated. At Willisden Green (17.5% WI), the Mannville zone is presently being completed and evaluated. Mirage will participate in the drilling of two wells in Morinville for Leduc oil (average WI 17%), a Leduc oil test at Joffre (10% WI), Simonette for Cadotte Gas (15% WI), Sinclair for Paddy gas (20% WI), Lomond for Mississippian oil (25% WI) and Hector for Nisku oil (10%). Mirage will also participate at a 10% working interest in the drilling of 4 wells in the Joffre area for Edmonton gas. In southeast Saskatchewan, Mirage is participating at a 12.5% working interest at Macoun in a horizontal Midale oil play. It is expected that all of the aforementioned wells will be drilled prior to year-end.

Mirage participated in the drilling and completion of a Montney oil well (30% WI) at Tangent, a Cardium oil well at Pembina (25% WI) and a Mississippian oil well at Hector (10% WI). The Tangent and Pembina wells are presently being equipped with surface facilities and should be on production prior to the end of November, 2006. The equipping and tie-in of the Hector well will be delayed until a Nisku location (on same lease) is drilled.

Mirage has participated in 30 wells (7.5 net) since June, 2006. As a result, Mirage is producing approximately 90 BOEPD with 120 BOEPD behind pipe awaiting tie-in. Mirage has identified an additional 43 locations (29% WI) to be drilled on its lands for the remainder of 2006 and 2007.

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

READER ADVISORY

FORWARD-LOOKING STATEMENTS Certain information set forth in this document, including management's assessment of Mirage's future plans and operations, contain forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Mirage's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Mirage will derive therefrom. Mirage disclaims any intention or obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.

Note: Boe means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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