SOURCE: Sunrise Energy Resources, Inc.

March 21, 2007 14:25 ET

Sunrise Energy Resources, Inc. Begins Development of the Rakitnyansk Block

NEW YORK, NY -- (MARKET WIRE) -- March 21, 2007 -- Sunrise Energy Resources, Inc. (OTCBB: SEYR) announces the beginning of development of the Rakitnyansk block in Eastern Ukraine.

The Company's wholly owned subsidiary, Esko Pivnich, holds an exploration license for the Rakitnyansk block. Well #1 of the Rakitnyansk block was drilled in 2002 to the depth of approximately 4560m (15,000 ft) by Poltavaneftegazgeologiya, which held the license for Rakitnyansk block prior to Esko Pivnich. Poltavaneftegazgeologiya currently acts as Sunrise Energy's PSA partner on the Rakitnyansk block.

The well has been shut-in since the completion of drilling due to the lack of funds required to prepare the well for production. For the last six months, the Company has conducted extensive workovers and flow tests that exhibited flow rates of approximately 4.0MMCF per day of natural gas, approximately 50 barrels of condensate per day on an 8mm choke.

The Company is currently in negotiations with the owner to lease the gas treatment facility, already on site, as well as the surrounding property. In addition to the existing treatment facility, the Company plans to build a gas/condensate separation unit and a four-mile gas pipeline to connect to the regional backbone gas network. The Company estimates a total investment of $1.0 million may be required to launch Well #1 into production. This includes the construction of the gas pipeline and the separation unit. Furthermore, the Company estimates that Well #1 can be launched within three months of the beginning of construction.

During the construction period, Well #1 will undergo continued testing that will enable the Company to estimate the reserves of the Rakitnyansk block and to determine the location of two new wells the Company plans to drill on Rakitnyansk block during 2007-2008.

The live Market News First interview with Sunrise Energy Resources' (SEYR) CFO, Roman Livson, on March 15, 2007, can now be accessed by clicking the Downloads and Podcasts icon at Also, stay tuned for the operational update on March 22, 2007.

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.

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

    Mercantile Ascendency NewsWire
    Angela Junell