SLB to Conduct Analysis and Drilling Program for Sun Cal's Jonah Prospect

Sun Cal Energy, an energy exploration company focused in the Southern San Joaquin Valley of California, the Anadarko Basin of Oklahoma, the Breton Sound of Louisiana and the Green River Basin of Wyoming, has engaged Schlumberger to conduct a reserve analysis and target drilling program on its Jonah Prospect.

A leading global engineering firm, Schlumberger has been involved in the development of the Lance reservoirs at the Jonah Field since its discovery in the 1980s. With unique experience in the area, Schlumberger has been engaged to determine potential production rates, gas in place and estimated ultimate recoveries for prospect. It has also been engaged to provide an evaluation and recommendation for drilling locations and acquisition of additional data/ seismic to optimize drilling. The results of the study are expected within mid-January 2008.

Commenting on these developments, Lewis Dillman, President and Chief Executive Officer of Sun Cal Energy Inc. states: "We are excited to be involved with Schlumberger, and in particular, look forward to drawing upon their breadth of expertise in full field development plans of the Jonah area.

With 93% natural gas drilling success rates in the entire state of Wyoming in 2006, Schlumberger's extensive geological and geophysical expertise will only serve to further enhance our likelihood of drilling success."

This engagement follows the recent independent results obtained from Heinz Geological estimating average well reserves of .8 BCF; with 20 acre well spacing, potential reserves could reach 324 BCF. It also follows statistics published by the Petroleum Association of Wyoming stating that of the 3,243 wells drilled and completed in 2006, 166, or 5.1% found oil, 3,009 or 92.8% found gas, and only 68 or 2.1% were dry holes.

As stated by Lewis Dillman: "Given the results of the Heinz study and inherent likelihood of success in the area, we are eager to utilize Schlumberger's network, technical expertise and experience to further enhance our plans to develop the Prospect and thus maximize value to our shareholders."