October 16, 2008
Sonoran Energy Provides Operational Update, Progress on KWB Field Redevelopment
DALLAS, Oct. 16 /PRNewswire-FirstCall/ -- Sonoran Energy, Inc. (OTC Pink Sheets: SNRN), the independent oil and gas exploration and production company, has successfully reached another milestone in its Central Texas KWB Work program. The program involves the re-entry, re-activation and re-completion of a number of non-producing wells in the Company's KWB field in Tom Green County, Texas.
Sonoran's KWB field has reached a production rate of 850 thousand cubic feet (MCF) per day after a successful hydraulic fracture stimulation of the KWB # 66 well. As the well cleaned up post-treatment, the rate has increased steadily. Combined with installation of plunger lift in the KWB #26 well, and the optimization in other producers in the field, the KWB field's average production rate has been increased by 61% week-on-week. The continued success in Central Texas represents a significant step forward towards Sonoran's goal of creating additional shareholder value.
Peter Rosenthal, Sonoran Energy's CEO commented: "The recent successes at KWB indicate that we have directed our very limited development capital in the right direction. As previously reported, the lack of production from our Louisiana assets has created a significant cash flow shortage for the Company and has resulted in a default under our Term Credit Agreement with Standard Bank. We still believe that our Louisiana assets have greater long term potential, but our current capital constraints dictate that we focus on KWB. We are currently negotiating with several parties to obtain funding for current operations and to continue development of our Louisiana assets. We are also seeking funds to refinance our existing debt. In the interim, our focus on KWB is slowly moving the Company to a profitable operating level."
About Sonoran Energy, Inc.
Sonoran Energy is a US-based independent oil and gas company that explores, develops, and enhances the performance of high value oil and gas opportunities. With a focus on health, safety and the environment, we leverage the Company's innovative organizational alignment model with leading technical partners.
For more information contact: Investor Relations Dana Johnston Taylor Rafferty Tel: (212) 889-4350 Email: [email protected]
This news release may contain forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Sonoran Energy, Inc.
CONTACT: Investor Relations, Dana Johnston of Taylor Rafferty,+1-212-889-4350, [email protected], for Sonoran Energy, Inc.