Sonoran Energy, Inc.

Sonoran Energy, Inc.

March 14, 2005 13:18 ET

Sonoran Energy Update on Operations



OTC Bulletin Board SYMBOL: SNRN

MARCH 14, 2005 - 13:18 ET

Sonoran Energy Update on Operations

LONDON, UNITED KINGDOM--(CCNMatthews - March 14, 2005) - Sonoran Energy,
Inc. (OTCBB:SNRN) President and CEO Peter Ostenfeld-Rosenthal announced
today that the Company is currently preparing its 10QSB report for the
third fiscal quarter ended January 31, 2005, and expects to report
results on or before March 17, 2005. He said that the Company is
undergoing plans to initiate a quarterly conference call beginning with
the announcement of results for the year ending April 30, 2005.

Ostenfeld-Rosenthal also provided updates on several fronts.

Ostenfeld-Rosenthal said that minimal revenues have begun to flow from
the Company's fields in East Texas, and that plans are underway to bring
North American production to the equivalent of approximately 3000
bbl/day by late 2005, although the plans, he cautioned, are conditioned
on financing. Production through the first three weeks in February
averaged 105 bbl/day, an increase of 30bbls/day over January, with a
peak rate of 165 bbl/day, however issues with the water disposal, which
is currently being addressed, have prevented the field from maintaining
levels in the 165 bbl/d range.

He also said that the Company is continuing its negotiation of the final
terms of the pending acquisition of Baron Oil, a privately held
Norwegian-based oil and gas company. The acquisition, which has, during
August 2004, received the approval of 80 percent of the Baron Oil
shareholders, has not yet been finalized due to the resolution of the
final terms of the acquisition agreement. Mr. Ostenfeld-Rosenthal added
that Baron Oil's financial information will not be consolidated into
Sonoran Energy's financial statements until the acquisition is final and
complete. A principal condition of closing is the completion of audited
Baron Oil financial statements, which have not yet been provided by
Baron Oil. Sonoran Energy intends to fully complete the exchange of
shares with Baron Oil shareholders when this and other issues have been
completed to the Company's satisfaction.

"Baron Oil received the required shareholder majority to complete the
transaction last August," said Ostenfeld-Rosenthal. "Based on this
approval, we have moved forward in good faith working their oil and gas
projects in the Caspian region and Texas into our business planning
process. We continue to work closely with Baron Oil management and their
legal counsel to work out the final details of the acquisition. Although
the process has taken longer than we thought it would, we believe the
transaction can be finalized during the current fiscal year ending April
30, 2005, though there is no way to guarantee that it will close by any
specific date. If Baron Oil shareholders have any questions regarding
the status of the acquisition they should contact Baron Oil's management

Ostenfeld-Rosenthal also provided a progress report on the Company's
project with the Natural Resources Authority (NRA) of the Hashemite
Kingdom of Jordan. Sonoran Energy is undertaking a number of technical
studies including 2D seismic re-processing, seismic interpretation
together with petrophysical and engineering work. These technical
studies are aimed at better assessing the hydrocarbon prospectivity of
the entire block, particularly in the vicinity of the Hamzeh Oil Field.
This work will be a significant factor in determining whether to begin
negotiation for a Production Sharing Agreement with the Government of

Sonoran Energy also reports that it is continuing to work with its
representative, Kazakhstan-based CSSI Group, to pursue oil and gas
opportunities in that country. As part of this work, CSSI Group will be
assisting Sonoran Energy with its official registration, which could
eventually lead to the opening of a Sonoran Energy field office in
Kazakhstan. At this stage, the Company is not in a position to project a
date for opening such an office, as it highly depends on successfully
securing one of the Company's potential acquisition projects in the
Caspian region.

As for the Company's USA operation, "We are focused on developing our
assets in North America," said Ostenfeld-Rosenthal. "The fields in East
Texas and Louisiana need a significant amount of work to bring them to
what we consider their full production, in the range of 3000 barrels of
oil equivalent (boe) per day. In Louisiana that means providing a water
disposal system either by drilling up to two water disposal wells or
entering into an existing water disposal system, along with remediation
of wells that are currently inactive as a result of mechanical problems
that exist within the current well bore. We estimate the cost of this
work at between $5 million and $8 million, and are currently working
diligently to secure financing, or to arrange a joint venture to provide
services. We anticipate that the process of bringing the fields to
'normal' operation and full production will likely take approximately
six months from the time work commences and financing is in place. Based
on that estimate, we believe we can achieve our desired production
levels during calendar 2005, although this is highly dependent on having
necessary financing."

Ostenfeld-Rosenthal also noted that Sonoran Energy has terminated its
relationship with Shanghai-based Global Investments & Banking
Corporation (GIBC), and is no longer working with the firm or its CEO
Greg Burnard. Sonoran remains interested in the eventual exploration of
the Asian markets, though it is currently concentrating its resources on
increasing production and securing potentially lucrative production
rights in areas with proven reserves.

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 Africa, the Middle East, the Caspian region and North America.
With a presence in the UK, 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

    Allen & Caron
    Joe Allen (Investors)
    (212) 691-8087
    Allen & Caron
    Brian Kennedy (Media)
    (212) 691-8087
    Sonoran Energy, Inc.
    Barry Forward
    N.A. Toll Free: 1-866-676-8386 or (604) 904-0876