Mirage Energy Ltd.
TSX VENTURE : MGE

Mirage Energy Ltd.

November 29, 2006 22:08 ET

Mirage Energy Ltd. Releases Third Quarter Results

CALGARY, ALBERTA--(CCNMatthews - Nov. 29, 2006) - Mirage Energy Ltd. ("Mirage" or the "Company")(TSX VENTURE:MGE) announces its financial and operating results for the quarter ended September 30, 2006. As at September 30, 2006, the Company reported a cash balance of $2,235,909 and a working capital position of $2,508,356. The company had net revenues of $22,853 for the period from incorporation March 17, 2006 to September 30, 2006 and for the three months ended September 30, 2006. The company incurred a net loss of $550,229 for the period of incorporation to September 30, 2006 a net loss of $503,690 for the three months ended September 30, 2006. Adjusting the net loss for non-cash items of depletion, depreciation, accretion and stock based compensation the company had a net loss of $116,570 for the period of incorporation to September 30, 2006 and 70,031 for the three months ended September 30, 2006. The Company incurred capital expenditures totaling $3,437,343 for the period of incorporation to September 30, 2006 and $2,507,780 for the three month period ended September 30.

During the third quarter of 2006, Mirage participated in drilling 14 wells (23% WI), resulting in 8 heavy oil wells, 2 light oil wells, 2 gas wells and 2 abandoned wells. Production for the third quarter averaged 35 bopd. Mirage's current production is 90 bopd, consisting of 75 bopd heavy oil and 15 bopd of light oil. The Company currently has 63 boepd production behind pipe (21 bopd and 250 mcfd gas) which is scheduled for tie-in prior to year end.

Mirage participated in the drilling of two gas wells during the quarter. The Company participated in a deep Halfway gas well at Gold Creek (10%WI) and an Ellerslie gas well (17.5%) at Willisden Green. Both wells have been completed and tested and are being evaluated for tie-in.

Mirage also participated during the quarter in three light oil drilling prospects at Pembina (25% WI), Evi (25% WI) and Hector (10% WI). The Pembina well (Cardium oil) and the Hector well (Mississippian oil) showed significant oil productivity and are currently awaiting surface facilities for tie-in. The Evi well did not produce any economical quantities of oil and was subsequently abandoned. The Montney well at Tangent (30% WI) has been brought on production in November, 2006 and is presently producing over 100 bopd.

Mirage has participated in 18 heavy oil wells at an average working interest of 26 percent in the Lloydminister area of Alberta and the Buzzard area of Western Saskatchewan. Currently, 17 of these wells have been brought on production with one well awaiting completion and surface equipment. Mirage anticipates drilling 3 additional wells in this area (0.6 wells net) prior to year end and 21 additional wells (4.2 net wells) in 2007.

In southern Alberta, Mirage with it partners has acquired a seismic option on 13 sections of land with full 3D seismic coverage. Mirage has committed to a Mississippian re-entry test as an earning well (25%WI). Mirage has identified other locations on this large land base with multi-zone potential.

Mirage participated in a Cadotte gas well (17.5%WI) in the Simonette area and a Nisku oil well (10% WI) in the Hector area. Both wells are cased and waiting completion.

Mirage has participated in 31 wells to date with an average working interest of 23% and has an inventory of 43 locations (average 28%WI) to be drilled that have been identified with either 2D or 3D seismic. Prior to year end, Mirage will participate in the drilling of 9 oil test wells. In Alberta, wells will be drilled at Hayter, three wells (50%WI), one well at Gold Creek (17.5%WI) and one well at Morinville (30%WI). In Saskatchewan, Mirage will participate in three wells at Buzzard (20%WI) and one horizontal oil test at Macoun (12.5%). In addition, three gas well tests in Alberta will be completed prior to year end with one well being drilled at Sinclair (20%WI) and two wells being drilled at Red Deer (10%WI).

With the aforementioned drilling activity, Mirage anticipates that 43 wells will be drilled prior to year end at an average working interest of 24 percent.

The Company reported that it has filed its quarterly financial statements and related Management's Discussion and Analysis for the period ended September 30, 2006 with Canadian securities regulatory authorities on SEDAR. This information may be accessed electronically at www.sedar.com.

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

ADVISORY

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environment risks, completion from other producers and ability to assess sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

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.

19,646,000 Common Shares Issued

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

Contact Information

  • Mirage Energy Ltd.
    Rene LaPrade P.Eng
    President and CEO
    (403) 232-1359
    (403) 232-1307 (FAX)
    Email: rene@mirage-energy.ca