SOURCE: Sun River Energy

July 18, 2007 16:30 ET

Sun River Energy, Inc. Completes Third Coal Bed Methane Well in New Mexico

WHEAT RIDGE, CO--(Marketwire - July 18, 2007) - Sun River Energy, Inc. (OTCBB: SNRV) announces the drilling of its third coalbed methane well, Myers #3, in Colfax County, New Mexico. With 2 coalbed wells drilled and cased, Sun River drilled a third well due east of the Myers #2 to test the consistency of formation and target coal zones. While numerous drilling problems were encountered, the third well encountered multiple coal zones through the Raton Formation and in the Upper Vermejo. The well has been cased to 1,300 feet and the company may drill the Lower Vermejo formation with a slim hole bit at a later date (about 150-200 feet). Drilling information and logs indicate potential for a successful frac/stimulation and completion. The fact that coals consistent with the Myers #2 and Myers #1 in the Raton and Vermejo formations were found, the Company believes is supportive of the Company's theory and belief in the reserve potential of its 12,000 acre Colfax County, New Mexico coalbed prospect.

All three wells showed multiple coals in both Raton and Vermejo formations which the Company intends to frac/stimulate at completion of the wells. The Company intends to complete all three wells in late July or August with frac/stimulation.

Based upon the coal discoveries in the first three wells, the Company is planning a 20 well drilling program for 2007-2008 which would fully explore its approximately 12,000 acres on 640 acre spacing. Based on historical reserve averages for coalbed methane wells in the Raton Basin, which are 1.0 BCF for Raton coals and 1.6 BCF for Vermejo coals per well, the Company believes that its acreage position could eventually be developed with significant reserves in a 2-3 year period. Based on the quality of Raton Basin gas -- high BTU/low contamination -- the Company believes that an average $6.00 per thousand price is achievable for gas it produces from these wells.

About Sun River Energy, Inc.

Sun River Energy, Inc., a development stage company, engaged in the exploration and development of oil and gas properties in the United States. Sun River Energy's objective is to seek out and develop opportunities in the Oil and Natural Gas sectors that represent a low risk opportunity. As well, Sun River aims to define larger projects that can be developed with joint venture partners. Sun River is confident that these viable opportunities exist in a sector that holds long-term fundamental growth opportunities.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications which may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above.

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