SOURCE: Cascade Energy, Inc.

September 12, 2005 09:00 ET

Cascade Energy Spuds "7-1-64-25W4M" Oil Well at Bolloque -- Well Now Drilling Ahead

SACRAMENTO, CA -- (MARKET WIRE) -- September 12, 2005 -- Cascade Energy, Inc. (OTC BB: CSCE) today is pleased to announce that the Company has spudded the "7-1-64-25W4M" oil well at the Bolloque Project, Alberta, Canada. The 1,024 metre (3,360 foot) well has commenced and is drilling ahead. Cascade anticipates the drilling to take approximately one week, followed by well flow testing and a full completion program if successful. The Leduc formation is the primary objective of the well.

Up to 8 additional wells at 40-acre drill spacing are possible based on the existing geological and seismic data where an independent reservoir engineer and geophysicist have confirmed the presence of a 100 foot Leduc Pinnacle Reef buildup under the Company's leases.

The project is located 60 miles north of Edmonton, Alberta, in the prolific oil producing Leduc area. Leduc Reef oil fields south of Bolloque contain oil wells that produce oil at rates of several hundred barrels per day. Also, individual wells have cumulatively produced over one million barrels of oil. Production has been between a low of 145 and a high of 400 barrels per day with pay thickness of 35 to 142 feet.

Cascade acquired a 49% working interest in the Bolloque Project and will earn its working interest by drilling, casing and completing one exploratory well on the leases.

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.

Chris Foster-Director

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