Sonoran Energy Begins Workover Program in Louisiana

Coastal Louisiana
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Sonoran Energy has started oil and gas production following the commencement of the Phase 1 work-over program on its Louisiana oil and gas properties. The first phase of the program is designed to increase production on the Louisiana properties with a total of four wells going into production over the next 3 to 4 weeks. Following the completion of this phase the Company plans to move quickly into Phases 2 and 3, which will consist of work-over programs on additional, higher-impact wells.

Bill McFie, Sonoran Energy Executive VP North America commented, "The first phase in Louisiana consisted of cleaning out the existing well bores with coiled tubing and improving the ability to economically dispose of the produced water from four wells on the properties. This Phase 1 program is expected to be completed within 3 to 4 weeks. Production has already begun on one of the wells, and our expectation is to increase production to up to 200 barrels of oil equivalents (BOE) per day by the end of phase one."

The goal of the full work-over program in Louisiana is to increase significantly the production from the properties with net proven developed reserves of 1.1 million barrels of oil and 6.5 BSCF of gas (2 million BOE). In February 2004, Sonoran Energy purchased a 100 percent working interest before payback (87% thereafter) in oil and gas wells and leases in the Beauregrad, Vernon, Rapides and Livingston Parishes in Louisiana.

"This first phase of the program provides Sonoran with an immediate increase in production and cash flow. This is just the beginning, and we expect to increase our production significantly during the further development phases of our three projects in the US (two in Texas and this project in Louisiana)," said Peter Rosenthal, Sonoran Energy President and CEO. "Our recent financing success has enabled us to commence work on the Louisiana operations and to start aggressively to build our overall production base. We were also very pleased to have been in a position to move quickly on this work-over program and bring these wells into production as the State of Louisiana re-builds in the wake of Hurricane Katrina."


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