Sunridge Energy Corp.
TSX VENTURE : SRG

Sunridge Energy Corp.

March 02, 2012 12:18 ET

Sunridge Energy Corp.: Drilling Commences at North Central Oil Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2012) - Sunridge Energy Corp. ("SRG" or the "Company") (TSX VENTURE:SRG) is pleased to announce that the drilling license for the North Central oil prospect has been granted. Drilling operations are expected to commence next week with Trinidad Drilling.

The zone of interest will be cored and analyzed and the well will be equipped for production in the second quarter.

Results of the core analysis combined with the planned 3-D seismic program will determine the viability of potential horizontal drilling to further exploit the target reservoir. Horizontal drilling would dramatically increase the recovery and the potential daily production rate, as well as reduce the impact of surface operations. Currently, SRG controls 2,320 acres (3.625 sections) of land associated with this prospect.

ABOUT NORTH CENTRAL OIL PROJECT

The property consists of three 640-acre Crown sections, and five freehold leases of which the company holds a 100-per-cent working interest, totaling 2,320 acres. 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.

Based on the results of this exploration program and the areal extent of the reservoir, the company will proceed with additional short-radius horizontal wells to the target formation in the Upper Mannville sandstone. Total drilling depth per well is anticipated to be 1,400 metres (measured depth). Three original vertical well signatures from past drilling efforts by other companies (decades ago) indicate a three- to four-mile by passed oil trend. The original well recovered free oil from the target formation nine years ago but was not developed by the original operator because its focus was on a deeper horizon. Laboratory oil analysis from this well indicates a gravity of 18.3 degrees API (American Petroleum Institute gravity) and displays a favourable viscosity profile for cold-flow production. The horizontal application is intended to maximize oil production at a higher daily rate and minimize surface footprint.

ABOUT SUNRIDGE

Sunridge is a junior oil and gas exploration and development company with production operations in the Province of Alberta. The recent acquisition of the 6-Phase Oil Heating proprietary technology gives Sunridge an unprecedented opportunity to extract extensive potential reserves of heavy oil (bitumen) at shallow depths in the Alberta Oil Sands. The Sunridge assets are structured to decrease operation costs, enhancing shareholder value.

On behalf of the board,

Dwayne Tyrkalo, Chief Executive Officer

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 Sunridge'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.

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