Sun Cal Energy Inc. Announces Engagement of Schlumberger to Conduct a Reserve Analysis and Drilling Program for Its Jonah Prospect
Sun Cal Energy Inc. (OTCBB:SCEY), 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 it 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.”
About the Jonah Prospect
The Jonah Field and the Pinedale Anticline are acknowledged as the premier gas fields in the Rocky Mountains. These fields are located in Wyoming’s Greater Green River Basin. According to the Wyoming State Geological Survey, the Greater Green River Basin contains approximately 26 TCF of natural gas which is the largest reserve in the State. The Jonah Field is estimated to contain 7 to 10 TCF of Natural Gas, which currently produces from more than 500 wells.
Sun Cal Energy Inc. has a 100% working interest in 6,000 acres of leases in the Jonah Field region of Wyoming — the second largest proven gas reserve in the United States. Sun Cal’s Prospects are identified as South Jonah, which consists of 2,477.68 acres and West Jonah, consisting of 3,546.89 acres. Most of the surrounding acreage is currently held by EnCana and Yates Petroleum, with BP and Chevron/Texaco also holding significant positions
Further Information
Shareholders and prospective investors are encouraged to visit Sun Cal Energy’s website: www.suncaloil.com and download Sun Cal Energy’s Investor Summary. Please feel free to call investor relations toll-free at 1-800-798-8334 to receive a full corporate investor’s package.
About Sun Cal Energy Inc.
Sun Cal Energy Inc. is a publicly traded independent oil and gas exploration company with headquarters in Calgary, Alberta, and an operational office in San Francisco, California. Sun Cal Energy aims to secure and develop a portfolio of oil and gas properties throughout America. The company is strategically placed 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. Sun Cal Energy Inc. trades under the ticker symbol: SCEY – “Sun Cal Energy Inc. — Providing Energy Solutions to America.”
On behalf of the Board
Lewis Dillman, President and CEO
Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as “expects”, “intends”, “plans”, “may”, “could”, “should”, “anticipates”, “likely”, “believes” and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company’s belief that Sun Cal Energy Inc. can identify and successfully negotiate leases for oil and gas properties in California, Oklahoma and Louisiana that the Company can participate in the exploration of those properties. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.