LOS ANGELES, Calif., March 18, 2003 (PRIMEZONE) -- Sonoran Energy, Inc. (OTCBB:SNRN) announced today that the Company has entered into an agreement to acquire a 15 percent Working Interest in a Southern Californian oilfield, producing over 1400 barrels per day through its operating partner. Sonoran Energy will receive a 5 percent Working Interest outright in exchange for securing a portion of the financing on the project. The Company will also have the sole option to acquire an additional 10 percent Working Interest after analyzing field performance of the project.
The cumulative production from the target field is over 150 million barrels of oil. The Company believes there is an additional probable reserve of eight million barrels of oil by fully developing this shallow depth, mature field. Life expectancy of the field under the current decline rate is 25 years.
A 15 percent Working Interest would give Sonoran Energy approximately 180 net barrels of oil per day from the field. The Company anticipates closing the agreement by mid-April 2003 following completion of due diligence on the property.
About Sonoran Energy
Sonoran Energy's primary objective is to identify, acquire and develop working interest percentages in smaller, underdeveloped oil and gas projects that do not meet the minimum requirements of major oil and gas corporations. Sonoran Energy's goal is to be recognized as a promising junior oil and gas producer.
This news release contains 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.