LOS ANGELES, June 3, 2003 (PRIMEZONE) -- Sonoran Energy, Inc. (OTCBB:SNRN) announced today the results of a 3rd party geologic review commissioned by the Company and operating partner Longbow LLC on the Emjayco Glide #33 Property holdings. The results of the geologic review conducted by a California Registered Geologist, indicate that the Pyramid Hill Sands -- located above the producing reservoirs on the 160-acre leasehold in the Mount Poso Oil Field -- are untapped and new well locations are needed to produce an additional 640,000 barrels of proved undeveloped (PUD) reserves.
It is estimated that each new well location contains reserves of approximately 64,000 barrels of oil. Estimated and historical initial production per well is 30-50 barrels of oil per day. In order to exploit these reserves the wells must have fracture stimulation. A conservative estimated daily increase of 200 barrels of oil per day with all ten wells in production is expected.
"The delineation of these additional undeveloped reserves on Sonoran's Emjayco Glide #33 holdings represents another significant increase to our underlying value," said Sonoran Energy CEO John Punzo. "This additional 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 holdings consist of an 80 percent working interest in the 160-acre property Emjayco Glide #33 property in the Mount Poso Field, located in Kern County, California, with a total of 12 wells and one water injection well that had been inactive since 1986. The wells were shut down in 1986 due to record low oil prices ($6.50 per barrel). After 17 years of being off production, eight wells were successfully turned on and are producing approximately 30 barrels of oil per day and work continues on returning the remaining wells to production.
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.