SOURCE: Cascade Energy, Inc.

January 19, 2006 09:00 ET

Cascade Updates Alberta Projects at Empress, Bolloque, and Introduces New Project Plans

TUCSON, AZ -- (MARKET WIRE) -- January 19, 2006 -- Cascade Energy, Inc. (OTC BB: CSCE), today reports on recent developments at the Company's Alberta oil and gas projects.

Empress Project: The "11-16" gas well at the Empress Project began commercial gas production on December 7, 2005 and Cascade has reported that it will begin to receive gas sales revenue based on its 21% working interest in the section containing the well. Gas is being sold into the Alta Gas pipeline from the 2 mile long connection that Cascade and its partners have constructed. Gas pricing in Alberta based on AECO prices on January 18th was $7.06 per Mcf.

Cascade today wishes to announce that it has finalized planning for the next well, designated the "10-21." Cascade has a 49% working interest in three additional sections that, together with the section that contains the "11-16" well, comprise the Empress project. Cascade is working with the operator and will announce a spud date shortly, dependant on rig availability.

Bolloque Project: The Company has now been informed of the "7-1" well completion results by the operator who undertook the perforation and testing of the well. The Leduc Formation reef in the well consisted of inter-fingerings of dolomite and shale, indicating the well had cut the edge of the reef. The most prospective zone was perforated and, after acidizing, gave up only formation water with H2S. The perforations were abandoned and the top of the Wabamun was then perforated where gas was indicated on logs. The perforations only yielded minor gas at low rates with formation water. The tubing was removed and the wellhead shut in. Cascade and the operator are now reviewing the drilling results and will plan a strategy that best suits this play.

New Project Plans: Cascade has approached Silver Star Energy, Inc., its joint venture partner in Kansas, respecting a level of participation in Silver Star's EVI area project. Silver Star has just completed a new oil well that will be on production at an initial production rate expected to be in the area of 150 bpd of light crude. Silver Star has announced that 3 to 4 more wells can be drilled on the currently held acreage. Cascade feels that the regional Slave Point Formation has great potential and is discussing options on a joint venture in the EVI area. Further developments will be reported as soon as available.

ABOUT CASCADE ENERGY

Cascade is an explorer and developer of oil and natural gas. 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 sourcing and acquiring prospective and producing properties that fit the company's investment, development and production criteria, Cascade minimizes risk and focuses on assets that provide a low risk, short payback period and significant potential reserves.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, discussions concerning operations or proposed operations at "Empress," "Bolloque" or "Evi," the acquisition of oil and gas reserves, any near-term production or cash flow and our ability to become cash flow positive in the short term to allow us to re-invest production dollars to enhance and grow company assets.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the numerous inherent uncertainties associated with oil and gas exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

ON BEHALF OF THE BOARD

Cascade Energy, Inc.

William Marshall

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