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

Mirage Energy Ltd.

September 06, 2007 20:13 ET

Mirage Energy Ltd. Releases Second Quarter Results

CALGARY, ALBERTA--(Marketwire - Sept. 6, 2007) - Mirage Energy Ltd. (TSX VENTURE:MGE) (PINK SHEETS:MRGYF) ("Mirage" or the "Company") announces it's financial and operating results for the quarter ended June 30, 2007.

Gross revenue for the period totaled $320,968 an increase of $317,527 over the second quarter of 2006. Mirage had a working capital deficiency of $673,626 as of June 30, 2007. The company has secured a credit line facility and is contemplating the sale of some properties, to address this issue.

The Company incurred capital expenditures totaling $230,172 for the three month period ended June 30, 2007, which was spent on well equipment and facilities.

During the second quarter, the Company did not participate in the drilling of any wells.

Production sales for the first quarter increased to average 85 boepd, consisting of 55 bpd heavy oil, 26 bpd light oil and 21 mcfd. During April and May, 2007, spring breakup severely hampered the Company's ability to initiate completions, tie-ins and ultimately maximize production. Mirage has now resolved most of its production deferral issues and is presently producing 104 boepd, consisting of 65 bopd heavy oil, 33 bpd light oil and 40 mcfd gas. Company has an additional production capability of 102 boepd (23 bpd oil and 480 mcfd gas) which is waiting on facility optimizations and tie-ins.

Mirage has participated in 40 wells to date with an average working interest of 22% and has an inventory of 20 drillable locations (average 31% working interest) that have been identified with either 2D or 3D seismic. Mirage is currently performing surface work in preparation to drill an additional 8 development wells (2.8 net wells), consisting of 8 heavy oil wells. This drilling program is anticipated commence in October and will have a significant positive impact on the Company's production base in 2007.

Additional Information

Mirage's unaudited consolidated financial statements and related managements' discussion and analysis for the three months ended June 30, 2007 have been filed on SEDAR at www.sedar.com. For additional information on the Company, please go to the Company's profile on SEDAR.

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

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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