Monarch Energy Limited

Monarch Energy Limited

October 16, 2007 09:00 ET

Monarch to Participate in Petro-Canada North Sea Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2007) - Monarch Energy Limited (TSX VENTURE:MNL)(FRANKFURT:EIY) ("Monarch" or the "Company") will participate in the drilling of an exploration well to evaluate the Maria prospect located in United Kingdom Continental Shelf (UKCS) Block 15/18a. Monarch will pay 11.11% of the cost to drill and test the farmin well to earn 8.33% in License P.233 (Block 15/18a). The license also includes two deeper Jurassic fallow discoveries. Additional technical work and new long offset 3D seismic is being proposed to further evaluate these discoveries and to mitigate technical risk on high-impact leads identified on the block.

It is currently planned to commence drilling the Maria well in Q1, 2008. Monarch is fully funded for the cost of its participation in this well. Upon fulfilling the terms of the farmin agreement working interests in License P.233 Block 15/18a will be Petro-Canada (Operator - 25%), ENI UK Limited (50%), Monarch Energy (8.33%), Gulf Shores Resources (8.33%) and Britcana, (International Frontier - 8.33%).

As previously announced, Monarch has entered into an agreement to earn an interest in the 72.5 square kilometer (approximately 18,000 acre) Ridgewood project located in Block 12/17 b in the North Sea. The proposed location is 35 kilometers northeast of the 170 million barrel Beatrice field and nine kilometers from the nearest proven Jurassic oil accumulation. Seismic coverage shows a structure containing two potential hydrocarbon bearing zones in the Jurassic. Lundin Petroleum AB is the operator and has contracted the Global SantaFe Galaxy II jack-up rig to drill this project. Drilling is expected to commence during the first half of November, 2007. Monarch is fully funded for the cost of its participation in this well.

Also as previously announced, Monarch is paying 20% of the cost of acquiring new 3-D seismic and 13.33% of the cost of drilling a test well to earn a 10% interest in a 422 square kilometer (approximately 104,000 acre) block located in Quad 30 in the UK North Sea. Recently acquired seismic indicates the block contains several Jurassic and Permian plays. A well drilled into one of the Jurassic plays logged oil before the well was abandoned due to insufficient zone thickness. 3-D seismic on the block indicates that the Jurassic thickens to the northwest of that well. Lundin Petroleum AB is also the operator of this project. Monarch is fully funded for the cost of its participation in the acquisition of the new 3-D seismic.

As part of its continuous active exploration program in the North Sea, Monarch continues to review other North Sea exploration projects.


Michael Turko, President and CEO

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