Sun Cal to Spud Third Deep Development Well on its Hobart Prospect

Sun Cal Energy says that Range Production company has filed for a third well to be drilled on Sun Cal Energy Inc.'s Hobart Prospect in Oklahoma.

This development follows the recent application for a permit to drill and test a second deep development well, Cunningham 1-2, on its Hobart Prospect in Oklahoma. The proposed well also builds on the successful drilling of the Sturgeon 1-11 well, also located in the Hobart Prospect. Currently, Marathon Oil is undergoing fracing operations, and is in the completion process of this well.

Commenting on these developments, Lewis Dillman, President and Chief Executive Officer of Sun Cal Energy Inc. states: "We are excited that a second major operator has expanded its exploration program on our acreage. The application for a third well to be drilled on the Hobart Prospect represents another significant step for our Company as we continue to build towards production and cash flow."

Sun Cal Energy Inc owns a 1.5% gross overriding royalty interest in the 1211 acre Hobart prospect strategically located in the Anadarko Basin and part of the Springer Morrow play - the largest such play in the State and Mid-Continent. Key players running rigs in the immediate area include Marathon Oil, Chesapeake Energy, and Range Resources.

Filed before the Corporation Commission of the State of Oklahoma, Range Production Company is seeking to establish a 640-acre drilling and spacing unit for a third scheduled well to be drilled in the Hobart Prospect.

"We have seen initial success on the first well drilled on our Hobart Property and recently we received confirmation on the second development well to be drilled. Now we have the activity of another major operator on the Prospect. This activity leads us to anticipate the commercial potential for existing hydrocarbons on the Hobart Prospect will soon be determined," stated Lewis Dillman. "This initial success helps validate the Sun Cal development strategy of acquiring properties with significant potential, low cost, and possible partnerships or joint ventures with major industry leaders."