Mira Resources Corp V.MRP

News...

[stranger2]

MIRA Completes Testing Program at Tom Shot Bank 1
VANCOUVER, BRITISH COLUMBIA, Dec 5, 2011 (Marketwire via COMTEX) --
Mira Resources Corp. (TSX VENTURE:MRP) ("Mira") and its wholly owned subsidiary Equinox TSB Development (Nigeria) Limited are pleased to announce the completion of the Testing Program at Tom Shot Bank 1 ("TSB 1").
Mira has completed its testing program of Tom Shot Bank. TSB 1 flowed a 120 foot section out of the 210 foot U7 interval in the Lower U7 for seven days under different choke sizes; the flows ranged from 77 barrels oil per day ("bopd") to 512 bopd, averaging at a rate of 280 bopd with no formation water and a GOR in the 850 to 950 range. Mira allowed this lower zone four days to clean up and then conducted controlled tests at various choke sizes for three additional days to gather the pertinent information. As previously announced the anticipated flow rate from the U7 was modeled by our independent reservoir experts incorporating the newly acquired data to predict a flow in excess of 1500 bopd on a 32/64" choke. After further analysis of our production models it has been suggested that due to near well bore reservoir damage during the original drilling of TSB 1 in 1980 when they took a hydrocarbon kick, additional stimulation techniques are required to increase the flow rates. Due to the variable flow rates it was estimated it would require an additional ten days to calculate a definitive skin and permeability, therefore the test was terminated. The most logical completion scenario that our independent completion and testing experts have modeled is through a comingled flow of the U4 gas reservoir and the U7 interval these two intervals have the ability to deliver in excess of 2500 bopd. As this is a completion and requires additional equipment, we are unable to complete the well at this time and we will start suspending the well and will re-continue the completion as a producer in conjunction with the drilling of TSB 3 in early 2012.
Thomas Cavanagh, President of Mira, stated, "We have successfully confirmed the presence of a light sweet 41.6 API oil in the lower 120 feet of the 210 foot thick U7 interval with no formation water produced during the tests. This production test confirmed the calibration and accuracy of the new well log interpretation thereby significantly de-risking an additional Gross 19 feet of oil in two sands in the U4, oil in the Upper 60 feet in the U7, 48 feet of oil in the U8 (with an additional 43 feet with indications masked by the two sets of pipe), and oil in the upper 74 feet in the U9 reservoir. The U 9.5 and lower U9, due to the interpreted high laminations delivered encouraging results and will be further evaluated in TSB 3 through higher resolution open hole logs and possible cores."
"Relative to potential resource and reserve revisions we are in the process of updating the 3D reservoir models for the U7, U8 and U9 with the new data. The U7 reservoir in the 51-101 for the P 50 model had 48 feet of potential, the new well logs predict 96 feet of net oil saturations in excess of 45%, the oil saturation calculation used as the cut off in poor quality formations, using a 30% Oil saturation assuming better quality reservoir would increase the interpreted net pay to 146 feet. We are extremely encouraged that we have found the U9, U8 and U7 intervals all with large intervals of high oil saturations."
"We will continue to iterate work with our contractors to update the significant larger probable oil bearing section into the 3D reservoir models which then will be supplied to an independent engineering firm to calculate new estimates of the potential of this field. The resource assessment in the 51-101 is being updated with an anticipated completion in January 2012. Additionally, we will be continuing the planning and acquisition of new data for TSB 3 scheduled for early 2012."
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: 133,933,167
SOURCE: Mira Resources Corp.

[mdjbrown]

Interesting comment -  As this is a completion and requires additional equipment, we are unable to complete the well at this time and we will start suspending the well and will re-continue the completion as a producer in conjunction with the drilling of TSB 3 in early 2012It appears that Mira does not anticipate any near term revenue from TSB1.I was hoping they could start production to

[Public_Heel]

The optimistic scenario (mentioned by Jennings) is that they can get some near-term production out of TSB-1. Since they would seem to have run out of cash, they will have to raise money to do even that. So.... I wonder if they will try to just get TSB-1/U7 completion money, or if they will go for the whole $50m to do TSB-3 and get the field into more comprehensive production. Should be interesting

[BurconNutriFan]

The nr says they will recomplete it while drilling TSB-3.

[Public_Heel]

""The nr says they will recomplete it while drilling TSB-3.""If they're really planning it that way, then they will have to go for the whole enchilada, financing-wise. Like I said, it will be interesting....

[dowd]

Public_Heel: I don't see how they can raise $50 million or the money just to complete it. The test results looked very iffy to my untrained eye. Dis the production start out at 500 bbls/d and enup at 70 thus averaging 280 bbls/d? And issuing 500 million more shares (plus 250 million warrants too?) seems a bit crazy. Don't forgt management would get 50 million new shares too. There would be

[Public_Heel]

""I don't see how they can raise $50 million or the money just to complete it.""..... Oh, I sure don't, either, which is why I got out back around .25 when I finally pieced together their financing prospects. I've learned to never underestimate the ways that people a few dozen $million to throw around can make money, though. I guess that selling the company would be