Sonoran Energy, Inc.
OTC Bulletin Board : SNRN

Sonoran Energy, Inc.

October 31, 2005 07:32 ET

Sonoran Energy Announces Start of Louisiana Oil & Gas Production

PHOENIX, ARIZONA--(CCNMatthews - Oct. 31, 2005) - Sonoran Energy, Inc. (OTCBB:SNRN) announced today it has started oil and gas production following the commencement of the Phase 1 work-over program on its Louisiana oil and gas properties. The first phase of the program is designed to increase production on the Louisiana properties with a total of four wells going into production over the next 3 to 4 weeks. Following the completion of this phase the Company plans to move quickly into Phases 2 and 3, which will consist of work-over programs on additional, higher-impact wells.

Bill McFie, Sonoran Energy Executive VP North America commented, "The first phase in Louisiana consisted of cleaning out the existing well bores with coiled tubing and improving the ability to economically dispose of the produced water from four wells on the properties. This Phase 1 program is expected to be completed within 3 to 4 weeks. Production has already begun on one of the wells, and our expectation is to increase production to up to 200 barrels of oil equivalents (BOE) per day by the end of phase one."

The goal of the full work-over program in Louisiana is to increase significantly the production from the properties with net proven developed reserves of 1.1 million barrels of oil and 6.5 BSCF of gas (2 million BOE). In February 2004, Sonoran Energy purchased a 100 percent working interest before payback (87% thereafter) in oil and gas wells and leases in the Beauregrad, Vernon, Rapides and Livingston Parishes in Louisiana.

"This first phase of the program provides Sonoran with an immediate increase in production and cash flow. This is just the beginning, and we expect to increase our production significantly during the further development phases of our three projects in the US (two in Texas and this project in Louisiana)," said Peter Rosenthal, Sonoran Energy President and CEO. "Our recent financing success has enabled us to commence work on the Louisiana operations and to start aggressively to build our overall production base. We were also very pleased to have been in a position to move quickly on this work-over program and bring these wells into production as the State of Louisiana re-builds in the wake of Hurricane Katrina."

About Sonoran Energy, Inc.

Sonoran Energy, Inc. is an independent oil and gas company that is building a diversified portfolio of high value oil and gas assets in North America, the Middle East, the Caspian region and North Africa. With a presence in the Middle East, Asia, and North America, Sonoran Energy explores, develops, and enhances the performance of material and high value oil and gas opportunities, leveraging the Company's technical expertise and extensive industry and governmental connections.

This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

Contact Information