Sun Cal Energy Provides Operational Update and Progress Report

Sun Cal Energy, Inc. (OCTBB:SCEY) is pleased to provide an operational update on recent progress made in the last quarter.

Sun Cal Energy achieved a number of important milestones within the last quarter. Most notable are the completion of an outstanding reserve analysis and drilling program by Schlumberger Data and Consulting Services on Sun Cal’s Jonah Prospect, as well as the announcement of daily gas flow rates on the Sturgeon 1-11, and the Cunningham 1-02 well located on the Hobart Lease Prospect.

“This quarter has been positive for our company. We feel that further development on our lease holdings will increase our company’s fundamental value as we continue generating opportunities on our properties.”

– George Drazenovic, CFO of Sun Cal.

Jonah Prospect — Jonah Field, Wyoming

The Jonah Prospect’s 6000 acres consists of two parcels, with 2,477.68 acres in the South East Jonah Prospect and 3,546.89 acres in the West Jonah Prospect. A recent report released by Schlumberger Data and Consulting Services on the South East Jonah Prospect expressed the Estimated Ultimate Recoveries (EUR) on the prospect to be as high as 1.28 trillion cubic feet of natural gas.

George Drazenovic commented on the report, stating: “We are extremely enthusiastic about the overwhelming reserve analysis conducted by Schlumberger. With the potential reserve estimations at 1.28 TCF, we are striving to make the South East Jonah Prospect the focus of our 2008 exploration program.”

The Jonah Field and the nearby Pinedale Anticline are acknowledged as the premier gas fields in the Rocky Mountains. These fields are located in Wyoming’s Greater Green River Basin, and according to the Wyoming State Geological Survey, contain approximately 26 TCF of natural gas. Currently, British Petroleum, Ultra Petroleum, Yates Petroleum and Encana are among the major players working in this area with Encana the largest having operated over 300 wells.

Hobart Lease Prospect, Anadarko Basin — Washita County, Oklahoma

Sun Cal currently holds a 1.5% Overriding Royalty Interest (ORRI) on 1211 acres within the Anadarko Basin of Oklahoma. To date, two successful commercially viable wells have been drilled on the prospect by Marathon Oil, with a combined flow rate of over 15MMCFD. Range Resources is currently permitting a third well on the Hobart lease which may begin as early as this year, and represents the opportunity for continued development and revenue growth on the Hobart Lease Prospect.

Lokern Prospect, San Joaquin Valley — Kern County, California

Sun Cal Energy holds a 45% Working Interest (75% Net Revenue) in 400 acres of oil leases in the Kern County region comprising the Lokern Prospect in the San Joaquin Valley. The Lokern prospect will be a major focus for Sun Cal Energy in the future, as 2D and 3D seismic, and well data imply a reserve potential of 75 million barrels of oil (MMBO). The Elk Hills Field, just three miles South of Sun Cal’s property has produced 92.8 MMBO and 117.9 billion cubic feet (BCF) of gas.

Sun Cal plans to use hydraulic fracturing technology and possible horizontal drilling to test the commercial productivity of the proven hydrocarbons beneath the Lokern structure.

Breton Sound Prospect, Deep Tuscaloosa — Breton Sound, Louisiana

Sun Cal holds a 5% WI with a 70% NRI in the 9440-acre Breton Sound Prospect. The average natural gas reserves per deep field in the Tuscaloosa are 250 BCF. Sun Cal is also looking at secondary targets, should they be successful, which could prove to represent significantly larger potential reserves of up to 5 trillion cubic feet (TCF) of natural gas.

The drilling of a 21,000 foot test well is anticipated in 2008.

“We are pleased with the multiple-project potential that the Breton Sound Prospect gives our company. Both the primary and secondary targets give significant reserve potential.” — Lewis Dillman, CEO of Sun Cal Energy.

“83/84″ Prospect, West Gomez Field — Pecos County, Texas

Sun Cal recently acquired a minority joint venture interest in a three well, multi-pay prospect in Pecos County, Texas. Located within the West Gomez Field, which has produced in excess of 5 trillion cubic feet of natural gas (TCF), the “83/84″ Prospect sits inside 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 the new well, the Sibley 84 #2, on a 1,280 acre lease. Published production data and geological and engineering calculations estimate recoverable reserves to be more than 27 BCF 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.

“We are excited with our acquisition of the 83/84 Project in the West Gomez Field,” said Lewis Dillman, CEO of Sun Cal Energy. “This acquisition is a part of a series of transactions within North America that will provide cash flow and enable the Company to continue to transition from exploratory activities to production.”

Centurion Prospect — Texas, Oklahoma, Alabama, Louisiana and Mississippi

Sun Cal Energy holds a 5% ORRI in 17,000 non-contiguous acres of producing Oil and Gas assets across Texas, Oklahoma, Alabama, Louisiana and Mississippi. The Prospect is comprised of 153 producing wells with well operators such as Exxon, Hunt Oil, and Quicksilver. To date, the cash-flow for the interest has increased to 19% per annum. In Q1 2008, Sun Cal received the first of its monthly cheques from the asset.

Finance

Sun Cal Energy has had success in securing financing, and has raised several million dollars in equity through Banque SCS Alliance, a large European-based Investment Bank. Given Sun Cal Energy’s recent activities, the introduction of production revenues, and absence of debt on its balance sheet, Sun Cal Energy does not foresee any difficulty in securing further and future financing.

Management

Sun Cal Energy is committed to maintaining a diversified portfolio of assets, seeking strategic partnerships for its high impact prospects, and utilizing consultant advice from E & P industry leaders where applicable.

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. 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. Forward looking statements are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “aims”, “potential”, “goal”, “objective”, “prospective”, and similar expressions or that events or conditions “will”, “would”, “may”, “can”, “could” or “should” occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.

Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas resources, the uncertainty of the requirements demanded by environmental agencies, the Company’s ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. 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.

Cautionary Note to U.S. Investors

The United States Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this news release, such as “prospective resources”, “stock tank oil initially in place”, “STOIIP”, “likely recovery factors”, “recovery factor”"prospective reserves”, “prospective resource”, “risk”, “likely reservoir”, “recoverable oil”, “possible resource”, “potential reserve” and “recoverable reserve potential that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our annual report on Form 10-KSB and quarterly reports on Form 10-QSB available from us or the SEC.”

This release contains information about adjacent properties on which we have no right to explore. We advise U.S. investors that the United States Securities and Exchange Commission’s oil and gas guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that oil and gas deposits on adjacent properties are not indicative of oil and gas deposits on our properties.