Stonefire Energy Corp.
TSX VENTURE : SFE.A
TSX VENTURE : SFE.B

Stonefire Energy Corp.

July 18, 2007 16:05 ET

Stonefire Energy Corp. Announces Edson 10-28-53-16W5M Gas Plant License

CALGARY, ALBERTA--(Marketwire - July 18, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Stonefire Energy Corp. (TSX VENTURE:SFE.A) (TSX VENTURE:SFE.B) ("Stonefire" or the "Company") is pleased to announce that it has received a Gas Plant License from the Alberta Energy and Utilities Board (AEUB) to construct and operate a new sweet gas plant in the Company's core Edson area located at 10-28-53-16W5M. The 10-28 gas plant has a license capacity of 5.65 mmscfd sales gas and 300 bbls/d natural gas liquids. Stonefire will be the operator and 100% working interest owner of this facility with a target start-up date of late August 2007.

This gas plant will allow further development of the Company's growing land base and inventory of high working interest multi-zone drilling locations in its core Edson area. The Edson 10-28 gas plant is expected to commence production with approximately 400 BOEPD of previously announced new pool, liquids-rich, natural gas production.

Stonefire Energy Corp. is an Alberta-based company formed to participate in oil and gas exploration, development and acquisitions focusing in the West Central region of Alberta. The Company's shares trade on the TSX Venture exchange under the symbols SFE.A and SFE.B. The Company currently has 15,265,000 Class A shares and 1,012,000 Class B shares outstanding.

Forward Looking Statements: This document contains statements about future events that are forward looking in nature and as a result are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided by management.

Reserves and production are stated in "barrels of oil equivalent" (BOE) derived by converting gas to an oil equivalency in the ratio of six thousand cubic feet of gas to one barrel of oil. "BOE" may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf : 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.

Contact Information

  • Stonefire Energy Corp.
    Mr. Richard Dahl
    President & Chief Executive Officer
    (403) 262-9885 ext 222
    (403) 262-9887 (FAX)
    or
    Stonefire Energy Corp.
    Mr. Ronald Williams
    Vice President Finance and CFO
    (403) 262-9885 ext 228
    (403) 262-9887 (FAX)
    or
    Stonefire Energy Corp.
    Suite 320, 333 - 5th Avenue SW
    Calgary, Alberta T2P 3B6