SOURCE: South Sea Energy Corp.

July 16, 2007 09:05 ET

South Sea Energy Signs Letter of Intent With Indonesian Company

HOUSTON, TX--(Marketwire - July 16, 2007) - South Sea Energy Corp. (OTCBB: SSGY) is pleased to announce it has signed a non-binding Letter Of Intent ("LOI") with PT Yasa Summa Energy ("PT Yasa") to jointly identify and acquire additional coal bed methane ("CBM") projects in East Kalimantan, Indonesia. South Sea and PT Yasa intend to sign a definitive agreement outlying the terms of their joint effort in the coming weeks, which will include all coal bed methane prospects in an expanded area of mutual interest that covers all the prospective basins in East Kalimantan, Indonesia.

As previously announced, South Sea is currently working toward signing a definitive agreement to acquire an interest in a joint venture CBM project located in East Kalimantan, Indonesia. Upon closing of the acquisition, South Sea would have the rights to participate in a joint venture encompassing a 1,200 km2 exploration and development block with PT Ephindo, an affiliate of PT Yasa.

Alan Charuk, President of South Sea Energy, said, "Working directly with a respected local company such as PT Yasa will strategically position South Sea to become a major player in Indonesia's up-and-coming CBM industry." Mr. Charuk added, "Having local expertise is the key to success as these companies understand Indonesia's business environment and have extensive experience working with Government agencies."

About PT Yasa Summa Energy

PT Yasa is a wholly owned subsidiary of PT Energi Pasir Hitman Indonesia ("PT Ephindo"), an Indonesia energy company established and led by Indonesian senior executives with decades of leadership of major multi-national and energy companies. PT Ephindo is committed to building a successful energy business in Indonesia.

About South Sea Energy Corp. (OTCBB: SSGY)

South Sea Energy Corp. ("South Sea") is an emerging junior energy company specializing in the exploration and development of coal bed methane in Indonesia's vast coal reserves. The Company is led by industry leading coal bed methane experts that have extensive experience in developing junior oil and gas companies. South Sea seeks significant opportunities that position the Company as a potential front-runner in Indonesia's burgeoning unconventional gas sector.

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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Alan T. Charuk, President

Contact Information

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