SOURCE: South Sea Energy Corp.

August 24, 2007 20:47 ET

South Sea Energy Announces Termination of Negotiations and Resignation of Directors

HOUSTON, TX--(Marketwire - August 24, 2007) - South Sea Energy Corp. (OTCBB: SSGY) ("South Sea" or the "Company") wishes to announce that it has entered into a Memorandum of Understanding ("MOU") for the termination of all negotiations with CBM Asia Development Corp regarding the purchase of the right to participate in a coal bed methane project in East Kalimantan, Indonesia.

In related news, the Company wishes to announce Alan Charuk has resigned as President of South Sea and from the Board of Directors, and Harvey Price, Charles Bloomquist, and James Charuk have resigned from the Board of Directors. These individuals have returned an aggregate of 26,000,000 shares of the Company's common stock to the Company which will be returned to the status of authorized but unissued shares.

The full terms and conditions of the MOU are disclosed in South Sea's report on Form 8K which was filed with the Securities and Exchange Commission on August 23, 2007.

Forward-Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding development and exploration activities. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of South Sea to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which South Sea Energy Corp., Henley Ventures, Inc, or any affiliates, has little or no control. Risks, uncertainties and other factors are discussed in the Form 10-KSB of South Sea for the fiscal year end December 31, 2006, and other documents filed from time to time by South Sea with the Securities and Exchange Commission. There is no assurance that South Sea's expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements.

On Behalf of the Board
South Sea Energy Corp.

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Dennis Mee

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