Sun Cal Energy Announces Commencement of Commercial Gas Sales From Its Sibley 84 #1 Well in the West Gomez Field

Sun Cal Energy Announces Commencement of Commercial Gas Sales From Its Sibley 84 #1 Well in the West Gomez Field

Wednesday, August 20th 2008

Sun Cal Energy Inc., 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, is pleased to announce that the first of several wells to be drilled in the multi-pay prospect in the West Gomez Field, the Sibley 84 #1 well, has reached its target depth, and has been placed into commercial production.

On August 16, gas initially flowed from the well at a rate of 2.7 million cubic feet of gas per day. The on-site engineers subsequently increased the choke to 16/64” from 12/64” resulting in a flow rate of 4 million cubic feet of gas per day. The well was then shut-in to install a separator to facilitate the handling of any fluids that may be produced with the gas. Final shut-in pressures were 4,400 psig and 760 psig on the casing and tubing-head respectively.

Continuing on this success, the operator is expected to begin drilling operations shortly on a second well located on the same block, the Sibley 84 #2 well, as it was staked last week following the completion of all road and lease construction work.

As stated by George Drazenovic, CFO of Sun Cal Energy Inc.: “We are excited that the Sibley 84 #1 well has been completed and brought into production. This is yet another significant milestone for our company and shareholders as we continue to build cash flow and realize the potential of our oil and gas assets. We look forward to even greater successes, particularly on our high impact assets in California and Wyoming.”

Having produced in excess of 5 TCF of natural gas, the West Gomez Field is one of the most prolific gas plays in the United States. The prospect, “83 84”, consists of two re-entry wells, the Gulf-Baker 83 #1 (originally owned by Gulf and operated by Getty Oil Co.) and the Sibley 84 #1, as well as a new well, the Sibley 84 #2, on a 1280 acre lease in Pecos County, Texas. Based on published production data and geological and engineering calculations, recoverable reserves are estimated to be more than 27 billion cubic feet of gas and 50,000 barrels of oil. Sun Cal’s interest will be 2% while any cost over-runs will be assumed by the operator.

The 83 84 Project is adjacent to proven production properties operated by the world’s leading oil and gas producers including Exxon Mobil Corp., Conoco Phillips Co., Chevron USA Inc., Hunt Oil Co., Chesapeake Operating Inc., Cimarex Energy Co. and Texaco Inc. Supported by a data review of the Composite Borehole Compensated Sonic Log from Schlumberger, Gamma Ray & Sidewall Neutron Porosity Logs, drilling and completion reports, and the production history in the area overall, the 83 84 Project could produce upwards of 6,500 MCFGPD and 80 BOPD.

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