Suroco Energy Inc.
TSX VENTURE : SRN

Suroco Energy Inc.

January 28, 2011 10:46 ET

Suroco Energy Inc. Announces Commencement of Appraisal Drilling in the Cohembi Oil Field in the Suroriente Block

CALGARY, ALBERTA--(Marketwire - Jan. 28, 2011) -

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") is pleased to announce that the first appraisal well in the Cohembi oil field commenced drilling on January 27th in the Suroriente Block in Colombia.

The Cohembi 2 appraisal well is located approximately 1 km away from the producing Cohembi 1 well and will target the Villeta 'N' reservoir in a position updip from the existing producer. The Cohembi 2 well is the first of a two well appraisal program designed to increase production from this field and to gather information regarding the distribution and extent of the oil-bearing reservoir. The offsetting Cohembi 1 well produced at an average rate of 1839 barrels per day of oil (267 barrels per day net after royalty) during Q4, 2010 and has cumulative gross oil production of 2.5 million barrels as at December 31, 2010 with no significant formation water production.

Depending upon the results of this two well program, further appraisal drilling in the Cohembi pool may be undertaken later in 2011.

For further information readers are referred to the Corporation's website (www.suroco.com) where an investor presentation can be found which includes further details in respect of its proposed activities and operations.

The Corporation is a Calgary-based junior oil and gas company, which explores for, develops, produces and sells crude oil, natural gas liquids and natural gas in Colombia and Western Canada. The Corporation's common shares trade on the TSX Venture Exchange under the symbol SRN.

Forward Looking Statements

This press release contains forward-looking statements relating to the operational and exploration activities for Suroco and other statements. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations and future exploration activities; and other factors, many of which are beyond the control of the Corporation. You can find an additional discussion of those assumptions, risks and uncertainties in Suroco's Canadian securities filings.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, Suroco disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Suroco undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

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

  • Suroco Energy Inc.
    Alastair Hill
    President and Chief Executive Officer
    (403) 232-6784
    (403) 232-6747 (FAX)
    or
    Suroco Energy Inc.
    Travis Doupe
    VP Finance and Chief Financial Officer
    (403) 232-6784
    (403) 232-6747 (FAX)
    www.suroco.com