Sonoran Energy, Inc.
OTC Bulletin Board : SNRN

Sonoran Energy, Inc.

October 26, 2006 00:30 ET

Sonoran Energy Issues Shareholder Update

PHOENIX, ARIZONA --(CCNMatthews - Oct. 26, 2006) - Sonoran Energy, Inc. (OTCBB:SNRN) today released the following business update to shareholders:

Sonoran Energy, Inc. and a major Texas-based oil & gas lender continue to finalize the details of a $12 million credit commitment announced during the Company's 1st Quarter Report. Sonoran Energy now expects the financing, which would consist of a senior secured debt facility, to close over the next several weeks.

Sonoran Energy, Inc. has also announced plans to move its head office from Phoenix, Arizona to Dallas, Texas upon completion of the $12 million financing. The move is intended to bring the Company's management and staff closer to Sonoran Energy's operations in Texas and Louisiana, as well as base the Company in the hub of the Country's oil and gas sector. The Company has worked with management and key staff to ensure that the cost associated with the move is kept to a minimum, and continuity of operations is maintained.

As part of an overall plan to reduce G & A expenses, management and key staff have also agreed to take significant salary cuts to facilitate the Company through its next stage of growth.

"The move to Dallas makes positive sense for the Company operationally, strategically and financially," said Peter Rosenthal, President and CEO of Sonoran Energy. "We will not only be significantly closer to our field operations in Texas and Louisiana, assets that represent our near term strategic priority, from our new headquarters we will have immediate access to the high quality deal flow generated in the heart of the U.S. oil and gas community."

Commenting on the update, Frank T. Smith, Chief Financial Officer, said, "Having worked in the "oil patch" for the majority of my career and the DFW area for the past 10 years, I know how important it is for an oil and gas company to be in Texas. Daily access to potential partners, investors, our suppliers and the other elements of the energy infrastructure provides for a more efficient and cost effective business operation. Consequently, we expect to enjoy a timely and dramatic reduction in our overhead and related expenses, which is a key component of our financial plan over the next 12 to 24 months. Furthermore, our staff's willingness to support this decision by agreeing to salary reductions shows their commitment and belief in the long term success of the Company."

About Sonoran Energy, Inc.

Sonoran Energy is a US-based independent oil and gas company that 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. For more information on the Company visit www.sonoranenergy.com

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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