Sharon Energy Ltd.
TSX VENTURE : SHY

Sharon Energy Ltd.

January 29, 2008 13:40 ET

Sharon Announces Drilling Has Commenced on the N.W. Speaks Robertson #1 Well, Lavaca County, Texas and Updates Texas Operations

CALGARY, ALBERTA--(Marketwire - Jan. 29, 2008) - Sharon Energy Ltd. (TSX VENTURE:SHY) announces that on January 29, 2008, drilling commenced on the N.W. Speaks Robertson #1 well, located in Lavaca County, Texas.

The projected total depth for the Robertson #1 well is 13,600 feet and is located 325 feet from a well which had produced from 125 feet of Wilcox gas pay.

Sharon developed the N.W. Speaks project and will be the operator. Sharon will pay 31.125% of the drilling costs and have a 35.844% working interest at casing point.

The Black Owl #1 well, Wharton County, Texas, Sharon working interest 24.4%, came on stream November 6, 2007, and to date has produced 110 MMcf of gas and 1930 barrels of condensate. The well is currently producing 1.4 MMcfd, at 5,225 psi flowing tubing pressure, with 23 barrels of condensate per day. Sharon is the operator and has a 24.4% working interest.

At the West Wharco Schilling Duson #1 well, Wharton County, Texas, operated by Sharon, 28.4375% working interest, plans are under way to complete a Yegua zone which, based on the Company's log interpretation, has 18 feet of potential oil and gas pay. Completion operations are expected to be carried out in February, 2008.

At the Cheney Hancock #1 well, Colorado County, Texas, Sharon has been appointed operator and has put the remaining partners on notice to fracture stimulate the Wilcox #18 sand and install production facilities. Sharon currently has a 14% working interest in this well. The completion operations are anticipated to be conducted in the first quarter of 2008.

At Allen Ranch, Sharon plans to conduct operations to restore production from the Hancock #2 well. Sharon has a 14% working interest in this well and operations are expected to be conducted in the first quarter of 2008.

Sharon is an oil and gas exploration and production company based in Calgary, Alberta. Sharon's current focus is on deep gas exploration in Texas.

ADVISORY: Certain information regarding the Company in this News Release including management's assessment of future plans and operations, drilling and completion plans and the timing thereof, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect 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) and at the Company's website (www.sharonenergy.com). 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.

The TSX Venture exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sharon Energy Ltd. - Houston, Texas
    H.C. (Kip) Ferguson, III
    President
    (713) 789-5395
    (713) 789-8454 (FAX)
    or
    Sharon Energy Ltd. - Calgary, Alberta
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890 (FAX)
    Website: www.sharonenergy.com