Sonoran Energy, Inc.
OTC Bulletin Board : SNRN

Sonoran Energy, Inc.

August 15, 2006 01:15 ET

Sonoran Energy Issues Shareholder Update

PHOENIX, ARIZONA--(CCNMatthews - Aug. 15, 2006) - Sonoran Energy, Inc. (OTCBB:SNRN) Chairman and CEO, Peter Rosenthal, today issued the following shareholder update.

Dear Valued Shareholders:

I am writing to highlight the recent progress that Sonoran has achieved on the operational, financial and management fronts, and to share our determination that the public equity markets begin to reflect the value that we are creating in Sonoran Energy.

Our recent announcement of the commencement of and additional 275 BOEPD of production from our Louisiana properties clearly demonstrates the potential of our world class strategic partnerships to extract value from dormant oil fields. The recent Louisiana success increases our total current gross production to ca. 400 BOEPD (net ca. 250 BOEPD). We expect this production level to significantly increase over the next several months when we put more of our wells into production.

This increased production has changed our cash flow profile dramatically for the better; and the steady advance of our track record of successful application of cutting edge oil extraction technology will encourage project finance support for similar projects. So our domestic operations are validating our business model while expanding the opportunities presented to Sonoran.

We are currently finalizing independent 3rd party engineering reports to substantiate our internal reserves numbers. This work is being undertaken by Haas Petroleum Engineering Services ( Our 10K will be delayed for a couple of weeks, to allow the 3rd party engineering studies to be completed, such that our balance sheet will reflect externally verified reserves numbers.

Frank T. Smith, a seasoned and well-regarded oil industry veteran, has recently joined our team as Executive VP and CFO, and will help strengthen Sonoran's foundation as well as allow us to more quickly and efficiently seize opportunities here and abroad. Along with Frank's skills, we have in the last few months added two senior industry executives - Robert M. King and Brad Farrow - to our Board of Directors. These additions demonstrate out commitment to building a management team capable of and focused on achieving a premier position in our industry.

We continue to identify opportunities in prospective oil regions in the Middle East, the Caspian region as well as West Africa, and the success of our revitalization of the Strickland 17 well in Louisiana will increase Sonoran's attraction as a credible oil and gas partner and operator.

We are keenly aware of the movement of our stock price in the face of Sonoran's fundamental progress and are confident that the value we are creating will be reflected in our shares at some point soon. We are expanding our investor relations and financial communications on both the institutional and retail front, actively targeting investors who are committed, like myself and my colleagues on the management team, to realizing the potential of Sonoran's strategy and business model. We appreciate your support and patience.

Peter Rosenthal, Chairman & CEO

Sonoran Energy, Inc.

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.

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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