SOURCE: Sunrise Energy Resources, Inc.

May 04, 2007 12:50 ET

Sunrise Energy Resources, Inc. Announces Expected Flow Rates From Well #21 of Karaikozovsk Block and Corrects Previous Press Release

NEW YORK, NY -- (MARKET WIRE) -- May 4, 2007 -- Sunrise Energy Resources, Inc. (OTCBB: SEYR) announces expansion of Karaikozovsk license area.

Following the completion of drilling of Well #21 of the Company's Karaikozovsk block in late January 2007, the Company has been carrying out extensive testing of the well and building related infrastructure including gas treatment and separation plant as well as a 1 mile long pipeline. The Company intends to produce gas from the new well rather than oil as originally intended due to better expected profitability. According to the Company's geologists the initial gas production rate can be estimated at approximately 4.0 MMCF of natural gas per day. Using the prevailing market price for gas in the Ukraine equivalent to around $3.5/MCF the new well is expected to generate additional annual revenues of approximately $5 million. The Company plans to launch well # 21 into production in late July 2007.

The Company issued a press release on April 18, 2007 announcing an expansion of the license area of Karaikozovsk lease by 34% to include the new area known as Lubovsk block. The company is correcting the previous press release to say that the newly expanded area is known as Pavlyukovsk block. Lubovsk block was already part of Karaikozovsk lease prior to the above expansion. The correct wording of the relevant part of the press release dated April 18, 2007 is provided below:

"The Company's wholly owned subsidiary Esko Pivnich holds an exploration license for Karaikozovsk lease in Eastern Ukraine. The license area was extended by approximately 34% from 21,242 acres to 28,490 acres. The new area known as Pavlyukovsk block is adjacent to Karaikozovsk lease currently operated by the Company and has similar geological structure. The Company plans to conduct seismic tests and start drilling an exploration well on the extended area in late 2007 and 2008."

About Sunrise Energy Resources

Sunrise Energy Resources, Inc., through its wholly owned subsidiaries, Esko Pivnich and Pari, engages in the exploration and production of oil and gas in Ukraine. The Company produces from Karaikozovsk field in the Eastern Ukraine and develops Rakitnyansk, and Rogan properties in the Eastern Ukraine as well as Peremyshlyansk, Chukvinsk, Niklovitsk, Pilipivsk and Sheremetyevsk properties in the Western Ukraine.

This press release includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.

Contact Information

  • Contact:
    Sunrise Energy Resources, Inc., New York
    Investor Relations
    Konstantin Tsiryulnikov