Sunridge Energy Corp.

Sunridge Energy Corp.

April 14, 2011 08:30 ET

Sunridge Announces Farm-In Agreement for North Central Alberta Oil Prospect

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 14, 2011) -Sunridge Energy Corp. (TSX VENTURE:SRG) ("Sunridge") is pleased to announce that it has entered into a Farm-In Agreement (the "Agreement") with 1483156 Alberta Ltd. ("1483156"), a company controlled by Dwayne Tyrkalo, President and director of Sunridge, HillOil (1993) Limited ("HillOil"), a company controlled by Lorne Hill, a director of Sunridge, and a private arms length Alberta company ("Alberta co.") (Alberta co., 1483156 and HillOil collectively referred to as the "Farmor"), to drill an initial well (the "Test Well") on an oil prospect located in North Central, Alberta (the "Property").

Under the terms of the Agreement, Sunridge is required to drill the Test Well to the Upper Mannville formation or to a depth of 1,300 metres (the "Contract Depth") by November 1, 2011. Upon drilling to the Contract Depth, Sunridge will earn 100% of the Farmor's interest in the Property and grant to the Farmor a 10% non-convertible gross overriding royalty on the Property.

The Agreement is subject to Sunridge obtaining approval from the TSX Venture Exchange.

About the Property

The Property consists of one crown lease of 640 acres, of which the Farmor holds a 100% working interest, and five freehold leases totaling 160 acres, of which the Farmor's working interest is 100% and is subject to a 16% freehold royalty. The Property is in close proximity to good pipeline and processing infrastructure with good paved and high grade gravel road access allowing for further drilling developments on adjacent lands.

The existing lands can accommodate 4 short radius horizontal wells to the target formation in the Upper Mannville sandstone. Total drilling distance per well is anticipated to be 1,600 metres (measured depth). Three original vertical well signatures from past drilling efforts by other companies (decades ago) indicate a 3 to 4 mile long trend for this prospective bypassed reservoir. The well drilled on Sunridge lands recovered free oil from the target formation 9 years ago but was not developed by the original operator because their focus was on a deeper horizon. Laboratory oil analysis from the old well on Sunridge lands indicates a gravity of 18.3 degrees API and displays a favorable viscosity profile for cold-flow production. The horizontal application is intended to recover the maximum amount of oil at a higher daily rate than a vertical wellbore.

About Sunridge

Sunridge is a junior oil and gas exploration and development company of oil and gas properties. Sunridge currently owns a 100% working interest in the Lavoy Property producing from the McMurray formation, a 32% working interest in the Leduc South Property producing from the Basal Ellerslie formation, and 100% working interests in the Wizard Lake property producing from the Edmonton Sand formation all in the Province of Alberta.

On behalf of the board,

Paul Chung, CEO

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Sunridge cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Sunridge's control. Such factors include, among other things: risks and uncertainties relating to Sun ridge's ability to complete the drilling of the Test Well; earn a working interest in the Property and that there will be production from any wells drilled. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Sunridge undertakes no obligation to publicly update or revise forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sunridge Energy Corp.
    Paul Chung, MBA

    Sunridge Energy Corp.
    Ike Osmani, M. Sc, P. Geo

    Rain Communications
    Nelson Da Silva

    Rain Communications
    Ralph Biggar