SOURCE: Cascade Energy, Inc.

July 12, 2005 09:00 ET

Cascade Energy Drilling "Coyote Creek #1" Well

SACRAMENTO, CA -- (MARKET WIRE) -- July 12, 2005 -- Cascade Energy, Inc. (OTC BB: CSCE), today announces that the Company has spudded the "Coyote Creek #1" natural gas well over the weekend, and the well is drilling ahead. Cascade is earning a 49% working interest in the project by drilling, casing and completing one well on the leased acreage.

The Coyote Creek natural gas prospect is located at the northern end of the Sacramento Basin in Tehama County, California. The prospect is exploring for a new gas field, which is seven miles north of the Corning Gas Field that produced approximately 8 Bcf gas from the Tehama Formation. The primary objective of the prospect is the prolific Forbes Formation sands that represent the most prospective gas target at the Coyote Creek prospect. Estimated recoverable gas reserves range from a low-end case with one well of about 2 Bcf to a high-end case, with multiple wells and pay zones, of 28 Bcf. The "Coyote Creek #1" well is a 5,000-foot test well to the base of the Forbes.

ABOUT CASCADE ENERGY

Cascade is an explorer for natural gas and oil with a head office in Sacramento, California in the heart of California 's gas country. The primary objective of Cascade is to acquire, discover, upgrade and expand North American onshore oil and gas reserves towards near-term production and cash flow, together with identifying and participating in exploration opportunities. By maintaining a balanced debt and equity mix, Cascade's operating strategy is to become cash flow positive in the short term to allow the Company a re-investment of production dollars to enhance and grow company assets. By searching and identifying exploration and producing properties that fit the company's investment and production criteria, Cascade has formulated a strategy to prioritize assets that provide low risk, short payback period and long life reserves.

Safe harbor for Forward-Looking Statements:

Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Cascade Energy, Inc. has little or no control.

ON BEHALF OF THE BOARD

Cascade Energy, Inc.

Sam Johal-President

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