Sun Cal Energy Inc: Update on Jonah Field prospects
by Sun Cal Energy Inc:
October 24, 2007
Editor's Note: Sun Cal Energy Inc issued a media release yesterday about its natural gas development activities in the Jonah Field, south of Pinedale, Wyoming. Sun Cal has a 100% working interest in 6,000 acres of high impact gas leases in the Jonah Field region of Wyoming. “The Jonah Field and the Pinedale Anticline are acknowledged as the premier gas fields in the Rocky Mountains,” states their release. “When the area is down spaced to allow wells on 20 acre spacing, 300 wells could be drilled resulting in nearly ten times the reserves and revenue.” Scroll down to read their entire media release.
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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 provide an overview of current operations and developments in the Jonah Field prospects.
Sun Cal has a 100% working interest in 6,000 acres of high impact gas leases in the Jonah Field region of Wyoming - the second largest proven gas reserve in the United States. Sun Cal Energy'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.
Since acquiring the Jonah Field prospects last month, management is pleased to report that the company is currently in the process of acquiring a technical reserve report and formulating a drilling program. Management has also raised and allocated sufficient funds to complete an active drilling program for the Jonah Field prospects while also continuing to remain debt free.
As stated by Lewis Dillman, CEO of Sun Cal: “We are very excited about the potential for our Jonah Field prospects, and we are eager to join the major oil and gas companies that will be drilling throughout the 2007-2008 season. The Jonah Field is a world class natural gas development area, with plans to allow the development of more than 3,000 new wells.”
According to the Petroleum Association of Wyoming, during 2006, 3,243 wells were drilled and completed. Of that number, 5.1% found oil, 92.8% found gas, and only 2.1% were dry holes. During 2006, the State of Wyoming was second in natural gas production and recorded its highest level of natural gas production, largely due to two massive but previously undeveloped natural gas formations – the Jonah Field and the adjacent Pinedale Anticline.
Management is very optimistic with the SunCal prospects given that they exist in close proximity to existing infrastructure, pipelines and producing fields. The significant increase in seismic and drilling activity in the area has resulted in a vastly expanded knowledge base of the region’s geology. These factors combined with the growing world appetite for oil and gas presents a timely and potentially lucrative opportunity for management to aggressively explore its Jonah Field prospects.
“We eagerly anticipate the completion of the technical analysis and evaluation of seismic data, and look forward to finalizing a work program with several drilling sites in the near future," stated Lewis Dillman: “We look forward to building relationships with the major oil and gas companies in the area, and realizing value from the current prospects and other possible future opportunities in Wyoming.”
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. Currently, EnCana, British Petroleum, Ultra Petroleum and Yates Petroleum are among the major players working in this area.
With current well spacing regulations, Sun Cal can drill up to 37 wells on this acreage. With technology developed in the Jonah and Pinedale fields, current completion techniques estimate gas in place between 1.0 and 3.0 BCF per well. As such, South Jonah and West Jonah could provide between 37 BCF and 111 BCF of recoverable Reserves at a value of $222 million to $667 million. When the area is down spaced to allow wells on 20 acre spacing, 300 wells could be drilled resulting in nearly ten times the reserves and revenue.
As stated by Lewis Dillman: "We look forward to exploring our Jonah Field prospects in Wyoming and adding to our cash flows beyond those of the Hobart and Centurion properties. We will continue to explore opportunities to develop our properties and ultimately seek to add value for our shareholders."
Other Sun Cal Projects
Lokern Prospect - Sun Cal Energy has the exclusive oil and gas rights for the Lokern Prospect which comprises 400 acres of prime land in the oil & gas rich Kern County region, the most prolific area in the San Joaquin Valley in Southern California. The company owns a 45% Working Interest and a 75% Net Revenue Interest in the prospect.
The Lokern Prospect's Structure is well defined based on 2D and 3D Seismic and well data, with an estimated recoverable 75+ million barrels of potential oil reserves.
Breton Sound Prospect - Sun Cal Energy holds an approximate 5% interest in a deep Tuscaloosa Prospect and leases situated in the prolific Breton sound area, in offshore Louisiana. The Breton Prospect is located on a seismically defined closure on the eastern extension of the Tuscaloosa trend and is potentially of the same size and closure of other established Tuscaloosa fields on the trend. The average per field reserves for the deep Tuscaloosa fields are approximately 250 BCF. The Breton Prospect also has secondary targets that, should they be successful, could prove to hold significantly larger potential reserves of up to 5 TCF in size. It is expected that an approximate 21,000 foot test well will be drilled in the fourth quarter of 2007.
Hobart Prospect - Sun Cal Energy's Hobart Prospect (1,211 acres) in Washita County Oklahoma is strategically located in the Anadarko Basin, part of the Springer Morrow Play - the largest play in the State and Mid-Continent. The company owns a 1.5% Overriding Royalty Interest in wells to be drilled by Marathon Oil on the Hobart Lease. Gas production in the immediate area is in the 10 to 15 MMCF/day range.
Centurion Property - Sun Cal Energy owns a 5% Overriding Royalty Interest in the Centurion Property. The Centurion Property combines more than 17,000 acres of producing oil and gas assets across Texas, Oklahoma, Alabama, Louisiana and Mississippi. There are nearly 160 producing wells on the asset with more than 50 additional proven/undeveloped drilling sites. Current production is comprised of 90% natural gas and 10% oil. Well operators include companies such as Exxon, Kerr-KcGee, Hunt Oil, Quicksilver and Vintex.
Cherokee Prospect (Pending) - Sun Cal Energy has recently signed a Letter of Intent to acquire a 100% working interest in 8,695 acres of leases in the Cherokee and Forest City Basins of Kansas. The leases consist of 24.9 BCF of gas and over 2 million BBLS of oil in reserves. Currently, the leases are producing 2,250 BBLS of oil per month. There are 320 drilled oil wells in the leases. Sun Cal Energy plans to re-complete 208 into gas wells and rework the remaining oil wells. With current reserve figures, the leases could provide in excess of $100 million in net cash flow.
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 Jonah Field 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
J. 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 and Oklahoma, and 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.
Contact:
Sun Cal Energy Inc.
Investor Relations
Lewis Dillman
Toll Free: 1-800-798-8334
ir@suncaloil.com
http://www.suncaloil.com
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