SOURCE: Sun Cal Energy Inc.

October 18, 2010 09:15 ET

Sun Cal Energy Inc. Expanding San Joaquin Presence

SAN FRANCISCO, CA--(Marketwire - October 18, 2010) -  Sun Cal Energy Inc. (PINKSHEETS: SCEY) is pleased to announce that it has entered final negotiations for the acquisition of a signification leasehold interest located in the prolific San Joaquin Valley Basin of Central California.

Sun Cal is negotiating a 66.7% Working Interest and a 20% Net Royalty Interest in an oil and gas prospect that contains approximately 10,000 contiguous acres in the San Joaquin Basin. The prospect is situated within the boundaries of an oil field trend, which through calculations utilizing the Monte Carlo Simulation, indicates the potential for over 200 million barrels of oil in place. California has 10 of the largest productive oil fields in North America.

As previously reported, on July 22, 2009, Occidental Petroleum Corporation announced that it had made a significant discovery of oil and gas reserves in Kern County, California. At the time of the announcement, Occidental believed there were between 150 million and 250 million gross barrels of oil equivalent (BOE) reserves within the outlined area where it drilled six wells to delineate the discovery.

With the stabilization of oil prices, the weakness in natural gas prices, and most importantly, the recent discovery of a massive and nearby oil field by Occidental, Sun Cal Energy has chosen to shift its primary company focus to developing its San Joaquin Basin Prospects in California. 

Legal Notice Regarding Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analysis and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective" and similar expressions or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Information concerning gold or other mineral reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present if and when a project is actually developed.

Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of gold or mineral deposits, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of gold or minerals are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in filings on Edgar of other junior mineral exploration companies with the US Securities and Exchange Commission. This announcement may also contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

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