PetroSun, New Standard Reach Canning Basin Deal

PetroSun, Inc. on Monday said that it has executed an agreement with New Standard Exploration NL covering specific blocks within Exploration Permit 442 located in the Canning Basin of Western Australia. PetroSun and New Standard will form a joint venture to explore, develop and produce oil and/or natural gas from the EP 442 blocks. PetroSun is the designated Manager/Operator and will earn a 70% working interest in the blocks through the sole funding of the initial three exploration wells.

The EP 442 joint venture leasehold consists of 22 graticular blocks that total 1,760 square kilometers (434,720 acres) within the permit boundaries. The initial test well will be drilled prior to September 30, 2007 to a depth sufficient to fully evaluate the Ordovician Acacia Sandstone target.

"The EP 442 prospect area is located southeast of the Shell Looma 1 that penetrated Ordovician age reservoirs with excellent oil shows and based on available data we expect the formations to thicken significantly across our EP 442 leasehold," said Gordon LeBlanc, Jr., CEO of PetroSun. "The EP 442 blocks and the previously announced EP 417 provide PetroSun with the opportunity to discover potentially large onshore oil reserves within a politically stable country."

PetroSun's current oil and gas operations are concentrated in the Ark-La-Tex region with plans to expand into New Mexico, Arizona and Australia in 2007.