Sonoran Energy, Inc.
OTC Bulletin Board : SNRN

Sonoran Energy, Inc.

January 13, 2006 03:01 ET

Sonoran Energy CEO Issues Operational Update

PHOENIX, ARIZONA--(CCNMatthews - Jan. 13, 2006) - Peter Rosenthal, President and CEO of Sonoran Energy, Inc. (OTCBB:SNRN), today released an operational update detailing the company's strategic advances in the calendar year 2005.

"The developments of the last twelve months have taken us a step closer to achieving our strategic ambitions. With many of the building blocks now in place and our innovative partnership alignment model established, Sonoran Energy believes it is poised for a period of significant growth," commented Rosenthal.

- In 2005 the Company secured close to $12 million in financing from a variety of strategic investors, many in the Middle East, where Sonoran Energy's MENAC (Middle East North Africa and Caspian) operations are based in Amman, Jordan.

- Prior to the filing of our 2nd Quarter results (December 15, 2005) we asked our auditors to conduct a special review of the Company's financial statements. We are pleased to report that noticeably absent in the auditor's report that was included in the 2nd Quarter filing was any comment describing the Company as a 'going concern'.

- In November Sonoran Energy signed a Production Sharing Agreement with the Government of Jordan, to explore for oil and gas in the Azraq block and to improve the oil production from the existing Hamza Oil field on this block.

- As part of our innovative partnership alignment model we signed agreements with a number of world-class partners to provide high quality technical capacity to the Company. We now have agreements with AGR (www.AGR.no), a leading provider of G & G, reservoir and drilling management technical expertise and services for the global oil and gas industry; RLG International (www.rlginternational.com), a global consultancy firm providing drilling performance improvement solutions; and Welltec (www.welltractor.com), a world leader in the development and application of cost-effective well intervention solutions for horizontal and deviated oil and gas wells.

- The completion of the acquisition of Baron Oil brought with it an extensive network of contacts in the Middle East, and the promising KWB oil and gas development project in West Texas.

- With the relocation of our head office from the UK to Phoenix, Arizona we have gained obvious cost-savings, consolidation of management time and resources, and most importantly a re-affirmation of our commitment to increase our production base in the U.S.

- We have further strengthened our core group of management and advisors, both with the addition of Jordanian businessman Khaldoun Awamleh to our Board of Directors, and also with the establishment of valuable working relationships with our investment bankers, MTM Corporate Finance in London, and our New York-based investor relations firm, Taylor Rafferty.

- In the U.S., we focused on solidifying our near term production base by enhancing our East Texas oil properties and launching an aggressive production enhancement program in Louisiana. We also completed a full field development plan for its West Texas KWB oil field. In Louisiana we are nearing completion of Phase I of our re-development program, consisting of three Phases.

Commenting on the re-development program in Louisiana, Rosenthal stated, "The results of the initial phase of the work program show that we are well on target to increase our production over the next 12 months. While these are preliminary flow rates, we are confident that we should achieve stable flow rates above 200 barrels of oil equivalents per day (boepd) over the next several weeks. This production increase should more than double our daily production and represents the first significant step in our goal to steadily increase production."

The first phase of the program was designed to rapidly increase production on the Louisiana properties, with a total of four wells going into production. Phases 2 and 3 of the development program will consist of work-over programs on additional, higher-impact wells.

"After completion of Phase I, we will immediately move on to Phase II, which should add significantly more production. We feel confident that we should reach our goal for the coming year to improve overall production from our US operations to approximately 2000 boepd," Rosenthal added.

"Let me conclude by saying that Sonoran Energy made great strides in 2005. We remain committed to our challenging vision, our great people, the societies in which we work, and we are committed to delivering outstanding value to our shareholders across the world. We look forward to the future with confidence and great anticipation."

For a copy of Sonoran Energy's most recent corporate update visit:

www.sonoranenergy.com/i/pdf/12-20-05-SNRN-Fact-Sheet.pdf

About Sonoran Energy, Inc.

Sonoran Energy is a US-based independent oil and gas company that is building a diversified portfolio of high value assets in North America, North Africa, the Middle East, and the Caspian region. Sonoran Energy explores, develops, and enhances the performance of high value oil and gas opportunities. With a focus on health, safety and the environment, we leverage the Company's innovative organizational alignment model with leading technical partners. www.sonoranenergy.com

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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.

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