LOS ANGELES, May 7, 2003 (PRIMEZONE) -- Sonoran Energy, Inc. (OTCBB:SNRN) announced today the results of a geologic review conducted by operating partner Longbow LLC on the Company's Deer Creek Oil Company holdings. The results of the geologic review indicate that the producing reservoirs on the combined 113-acre leasehold in the Deer Creek Oil Field are under-exploited and that up to five new well locations are needed to produce an additional 250,000 barrels of proved undeveloped (PUD) reserves.
It is estimated that each new well location contains reserves of approximately 50,000 barrels of oil. Estimated and historical initial production per well is 20-30 barrels of oil per day. A conservative estimated daily increase of 100 barrels of oil per day with all five wells in production.
"The discovery of these new reserves on Sonoran's Deer Creek holdings represents a significant increase to our underlying value," said Sonoran Energy CEO John Punzo. "The new production capability combined with our growing revenue stream from the current Sonoran family of projects puts us well on track to attaining our goal of becoming a producer of between 1000 and 1500 barrels of oil per day."
Sonoran Energy's Deer Creek Oil Company holdings consist of a 80 percent working interest in the 93-acre Deer Creek Field Keystone producing approximately 35 barrels of oil per day, and a 50 percent working interest in the 20-acre Merzonian Lease currently producing approximately 25 barrels of oil per day.
Located approximately 42 miles north of Bakersfield, California in an area predominantly explored and operated by small independent oil and gas companies, the Deer Creek Field lies in the western dipping homocline along the western flank of the Sierra Nevada. The reservoir consists of loosely consolidated continental to shallow marine deposits of the Upper Miocene to Lower Pliocene Age, Santa Margartia Formation. The average depth of the producing zones is 715 to 850-feet.
Domestic U.S. oil producers like Sonoran are positioned to significantly benefit from rising demand for U.S. domestic oil production in light of the brewing International oil production crisis due to war, strikes, and terrorist threats. Nigerian subsidiaries of Royal Dutch/Shell Group (NYSE:RD) (NYSE:SC), ChevronTexaco Corp. (NYSE:CVX) and TotalFinaElf (NYSE:TOT) halted production totaling 817,500 barrels a day, or about 40% of Nigeria's output of some 2 million b/d amid violence between rival ethnic groups, the Ijaws and Itsekiri, leading up to the recent parliamentary and presidential elections. Additionally, oil-well firefighters from Houston-based Boots & Coots International Well Control (AMEX:WEL) traveled to southern Iraq to assess damage in the country's key Rumaila oil fields. The Pentagon has contacted a number of major oil industry service companies among them Halliburton Co. (NYSE:HAL) to repair any of Iraq's wells that are damaged and assess everything from wells to pipelines and pumping stations. The firefighting teams are looking at a timetable of 30 to 45 days to extinguish the fires and cap the wells.
About Sonoran Energy
Sonoran Energy's primary objective is to identify, acquire and develop working interest percentages in smaller, underdeveloped oil and gas projects that do not meet the minimum requirements of major oil and gas corporations. Sonoran Energy's goal is to be recognized as a promising junior oil and gas producer. Through its partnership with Longbow LLC the Company intends to make acquisitions that will, over a 12 to 24 month period, allow the company to become a producer of 1000 to 1500 BOE per day (barrel oil equivalent) and 2500 to 5000 Mcf of gas.
About Longbow LLC
The principals of Longbow, LLC collectively have over eighty-five years of diversified oil and gas experience with both majors and independent companies including Chevron, Mobil, Arco Oil & Gas and the U.S. Department of Energy in the largest oil and gas producing basins in North America. Formed in November 2001, Longbow is Archer Exploration, Inc.'s operating partner as they pursue oil and gas acquisition, exploration, and exploitation opportunities in the Western United States.
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.