Sharon Energy Completes Deep Gas Well in Texas

Sharon Energy Ltd. reports that the Lehrer No. 1 exploration well in Colorado County, Texas, has been perforated and fracture stimulated in the deepest of nine Wilcox sand intervals identified in the well bore at a depth of 15,146 feet. The zone has been flowing through test facilities for 38 hours with a final restricted flow rate of 2.65 mmcf/d at 6,900 psi on an 11/64-inch choke. The estimated bottom hole pressure is 13,700 psi. The well is being connected to the production facilities and production is expected to commence at an initial rate restricted to approximately 2 mmcf/d.

This zone will be produced for a two-week period for evaluation, after which a second Wilcox zone will be completed and tested. Following the testing, production from the two zones will be commingled.

A second deep Wilcox well is planned to commence drilling in July of 2003 and will target additional deeper potential zones. Sharon will have a 6.4% working interest in this well.