Sonoran Energy, Inc.
OTC Bulletin Board : SNRN

Sonoran Energy, Inc.

December 06, 2006 01:24 ET

Sonoran Energy Secures $15 million in Financing

DALLAS, TEXAS--(CCNMatthews - Dec. 6, 2006) - Sonoran Energy, Inc. (OTCBB:SNRN) today announced that it has concluded a $15 million financing consisting of a $12 million reserve-based debt facility from NGP Capital Resources Company (NASDAQ:NGPC) and a contemporaneous $3 million equity investment from a private investor to provide funding for its on-going development operations.

Peter Rosenthal, Chief Executive Officer of Sonoran Energy commented, "We are very pleased to have attracted such a high quality oil and gas lending partner though the strength and value of our assets in Texas and Louisiana. With the financial backing of NGP Capital Resources we can now further develop our proven oil and gas reserves and bring them into production. We will expand the development of our project in Louisiana and also commence a development program in West Texas, as well as implement some production enhancement measures in our East Texas project."

"We are very pleased to have this opportunity to work with Sonoran Energy to develop its assets and assist in its long-term growth," said John H. Homier, President and CEO of NGP Capital Resources Company. "We look forward to a long and successful relationship."

The financing consists of a $12 million reserve-based debt facility provided by NGP Capital Resources Company. Sonoran Energy has immediate access to approximately $7 million of the debt facility, with an additional $5 million as more reserves are proven up.

The financing further comprises a private equity investment into the Company of $3 million in exchange for 30 million restricted shares. The equity investor, which the Company believes is a strategic long term investor, will further receive 50 million warrants.

"This financing transforms Sonoran's capital structure into one that will support our near term domestic growth strategy. The Company's working capital profile is immediately improved and sufficient liquidity is being made available to move forward our capital investment plan. This should result in steadily increased production from our proved oil and gas reserves," said Executive VP & CFO Frank T. Smith Jr.

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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