SOURCE: PetroSun, Inc.

January 23, 2008 10:10 ET

PetroSun Oil and Gas Division Announces 2008 Domestic Exploration and Development Program

SCOTTSDALE, AZ--(Marketwire - January 23, 2008) - PetroSun, Inc. (PINKSHEETS: PSUD) announced today its 2008 domestic oil and gas exploration and development program that will be directed by Executive Vice-President Dr. John Templin.

Holbrook Basin, Apache County, Arizona

PetroSun and its working interest partner Holbrook Energy, LLC will drill basement exploration test wells on the Manuel Seep and Little Colorado prospects. The Permian, Pennsylvanian and Devonian formations will be evaluated for crude oil, natural gas and helium.

The Holbrook Basin contains promising indications of crude oil, natural gas and helium from previous exploration wells, geological studies and prior producing helium fields. The similarities of age, rock characteristics, salt and reefs found in the prolific Permian Basin of West Texas and the Holbrook Basin enhances the potential value of the PetroSun exploration program. North of the Holbrook Basin in Apache County lies the Dineh-bi-Keyah Field. The Dineh-bi-Keyah has produced in excess of 18,300,000 barrels of oil since its discovery. The initial production rate of individual wells was as high as 3,300 barrels of oil per day. The #4 Navajo well has produced more than 3.5 million barrels of oil from a depth of less than 3,000 feet.

The Manuel Seep and Little Colorado prospects are located within the 985,000-acre NZOG lease obtained by PetroSun that includes oil and gas rights contained within the Holbrook Basin of Arizona and the San Juan Basin of New Mexico. The lease provides for a net revenue interest of eighty-one and one quarter percent. A map detailing the NZOG leasehold may be viewed at www.petrosuninc.com.

Mohave County, Arizona

PetroSun has been advised by Vanterra Energy of Denver, Colorado that the Basin and Range test well has been modified to evaluate hydrocarbon potential to a depth of 10,000 feet. The well is scheduled for the fourth quarter of 2008.

The agreement grants PetroSun a twenty-five percent carried working interest through casing point on the initial test well. The Company will maintain its twenty-five percent working interest on the 12,783-acre lease on all future wells drilled under the agreement. The Mohave County prospect is part of the 985,000-acre NZOG lease and provides for an 81.25% net revenue interest to the working interest owners.

North Louisiana

The Company will be announcing its first and second quarter exploration and development plans for North Louisiana in the near future. The development of proven undeveloped oil and gas zones located within the Sibley Field of Webster Parish will be the cornerstone of the program.

About PetroSun

PetroSun's operations include oil and gas exploration, development and production and algae-to-algal oil alternative fuels production. The oil and gas division is focused on the exploration of the Holbrook Basin of Arizona, the San Juan Basin of New Mexico and Australian based prospects. The Company will continue the development of oil and gas reserves in Louisiana. The alternative fuels division has entered the commercial stage of its algae-to-biofuels production technology. The Company plans to establish algae farms and algal oil extraction plants in Alabama, Arizona, Louisiana, Mexico, Brazil and Australia during 2008. The algal oil product will be marketed as feedstock to existing biodiesel refiners and planned company owned refineries. PetroSun is headquartered in Scottsdale, Arizona with field offices in Shreveport, Louisiana and Opelika, Alabama. For more information about PetroSun visit the company's website at http://www.petrosuninc.com.

Except historical matter contained herein, matters discussed in this news release are forward-looking statements and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties, which may affect the Company's business and prospects and cause actual results to differ materially from these forward-looking statements.

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