International Sovereign Energy Corp.
TSX : ISR

International Sovereign Energy Corp.

March 18, 2008 15:22 ET

International Sovereign Energy Corp.: 2007 Year-End Reserves Summary

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2008) - International Sovereign Energy Corp. (TSX:ISR) (the "Company ") is pleased to provide the following summary information from its annual independent reserve evaluation as prepared by Chapman Petroleum Engineering Ltd. as at December 31, 2007 ("CPE Report"). CPE's Report is compliant with National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities (N1 51-101).

Highlights (based on forecast prices and costs) are as follows:

- Proved plus probably reserves increased 15.9% to 4,346 mboe from 3,748 mboe as at December 31, 2006.

- The Net Present Value (NPV) of the Company's estimated future net revenue based on forecast prices and costs discounted at 10% before tax is $62,801M a 12% increase over December 31, 2006.

- The Company's proved plus probable reserves are comprised of 75.5% gas, 20.8% oil and 3.7% natural gas liquids.

- Proved plus probable reserve life index (RLI) 12.9 years.

The following table provides summary information presented in the CPE Report effective December 31, 2007. Detailed reserve information will be presented in the Company's year-end financial results and in the Statement of Reserves Data Sector of the Company's Annual Information from which will be filed in due course on SEDAR.



Summary of Reserves
-------------------

Total Oil
Oil Natural Gas Natural Gas Equivalent
Oil Gross Gross Liquids (mboe)
mstb mmscf Gross Gross
-------------------------------------------------
Proved Producing 439 6,466 47 1,564
-------------------------------------------------

Total Proved 439 6,466 47 1,564

Probable 465 13,212 115 2,782
-------------------------------------------------

Total Proved Plus Probable 904 19,678 162 4,346
-------------------------------------------------


Net Present Discounted Values of Future Net Revenue
Based on Forecast Prices and Costs
Before Income Taxes ($000)
--------------------------

0% 5% 10%
-------------------------------------------------
Total Proved $ 37,908 $ 30,819 $ 26,270
Probable $ 71,184 $ 48,763 $ 36,531
-------------------------------------------------
Total Proved Plus Probable $ 109,092 $ 79,582 $ 62,801
-------------------------------------------------

Notes:

(1) Numbers in the tables are subject to rounding error.

(2) Natural gas is converted to barrels of oil equivalent (boe) at a ratio
of six thousand standard cubic feet to one barrel of oil (6 mcf: 1 bbl).
Boe may be misleading if used in isolation. A boe conversion of
6 mcf: 1bbl is based on an energy equivalency conversion method
applicable at the burner tip and does not represent a value at the
wellhead.

(3) The net present values are of Future Net Revenue before taxes and are
based on forecast prices and costs. It should not be assumed that the
undiscounted and discounted future net revenues estimated in the CPE
Report represent the fair market value of the reserves.

(4) Royalties: Revisions to the Alberta Crown Royalties were proposed in
October, 2007 and the changes are scheduled to be implemented in
January, 2009. The changes are intended to increase the Royalties for
conventional oil and natural gas, with sliding scale sensitivities to
both commodity prices and well productivity rates. As of December 31,
2007 the Government of Alberta had not introduced the enabling
legislation and discussions are continuing concerning the application of
the proposed revisions. The Chapman evaluation has therefore been
prepared under the existing Royalties regulations, in accordance with
advice from the ASC as recommended by the Society of Petroleum
Evaluation Engineers ("SPEE").


Reserves Committee of International Sovereign

The Company has a Reserves Committee comprised of independent board members that reviews the qualifications and appointment of the independent reserve evaluators. The Reserves Committee also reviews the process for providing information to the evaluators and meets with the independent evaluators to discuss the procedures used in the independent report to review major property assessments and to discuss any areas of risk. The evaluation in the CPE Report of the 2007 year-end reserves of the Company was reviewed by the Reserves Committee and approved by the Company's Board of Directors.

Reader's Advisory

Forward-looking statements: This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of these events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from. Additional information on the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

International Sovereign Energy Corp. is an oil and gas exploration development and production company with offices in Vancouver, British Columbia and Calgary, Alberta and is active in the exploration and development of hydrocarbon reserves in Western Canada and internationally.

Certain information provided in this press release contains forward-looking statements that by their nature are subject to numerous risks and uncertainties and readers are cautioned that actual results may vary considerably from those forecasted.

Shares Outstanding: 13,928,084

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • International Sovereign Energy Corp.
    Omair Choudhry
    Chief Financial Officer
    (604) 684-7372
    (604) 684-2407 (FAX)
    Website: www.isove.com