Rock Energy Reports Early Steaming Results of Orcutt Diatomite Project Exceeding Expectations



    
    Initial Completion at Orcutt 85A at 125 Barrels of Oil
    

    HOUSTON, June 4 /CNW/ -- Rock Energy Resources, Inc. (OTC Bulletin Board:  
RCKE), an independent domestic oil and natural gas company, today reported
that during its scheduled conference call and webcast held yesterday
afternoon, management reported that the initial steaming results at its Orcutt
Diatomite project have meaningfully exceeded its expectations.
    According to Tom Elliott, President and Chief Operating Officer of the
Company, "During the first 16 hours of testing, we flowed back an estimated
125 barrels of oil.  Bear in mind that we achieved this output using only
temporary steaming facilities.  At this time, our total steam injections into
any one well are significantly below what we will be doing with permanent
facilities, which we look to have up and running in the fourth quarter of this
year.  We have a lot to learn over the coming months, however, these results
are certainly well above what we had expected."
    Development drilling on the 800 proven acres would be vertically and
directionally to achieve bottom hole locations for 5/16 acre drainage, with
the possibility of an expansion of the Orcutt producing field boundaries by
another 25-50% of the currently known limits of the proven results.  Rock
Energy reported that its internal estimates for proven reserves at Orcutt are
26.6 million barrels of proven undeveloped oil; future net revenues of $1.85
billion; and Sec 10% net present value of $676.9 million.  These internal
estimates contemplate a full scale drilling program providing for 1200 bottom
hole locations, and are based on a per barrel price of $100 flat over the
anticipated life of the resource base.
    On the same call, Mark Harrington, Vice Chairman of the Company,
responded to a question about economics saying, "Our steaming costs are
estimated at $12 per barrel, assuming $11 gas; and lease operating costs are
$9 per barrel. So, assuming $100 oil prices, and we are above that now, net
operating cash flow is above $60 per barrel. If you allocate all the needed
infrastructure costs, including steam generators, production batteries,
steaming lines, well costs -- everything all in, our cost to get at each
barrel of proven reserves, assuming only a 20% recovery rate, is under $10 per
barrel."
    Rock Emery, founder, Chairman and CEO of Rock Energy, added, "We are
confident that our asset values, as indicated on the new PowerPoint posted to
our website, will continue to increase for years to come.  The proven resource
base at Orcutt is $6.77 per share, and this is factoring only a 20% recovery
rate and on only 800 acres.  Future growth is from NW Casmalia, which we
believe could prove as significant, if not more so, as Orcutt.  Moreover,
increasing our recovery rate from a conservative 20% to 35%+ will net straight
to the bottom line.  We can also add more reserves from the Escolle lease,
which is contiguous to our projects in Santa Barbara.  And, we can also double
our recovery rates when we convert from cyclic steam recovery to line drive
steam."
    Concluding, Emery said, "We have endeavored to show our shareholders
reasonable expectations on prospective results from our high quality resource
base.  These results, however, have more than significantly exceeded even our
highest expectations.  With an estimated 1.2 billion barrels of oil in place
at Orcutt -- and room for expanding the geologic limits of the field -- we are
excited about our accreting further value to our shareholders in the months
and years to come."
    A full replay of the conference call can be accessed on
www.rockenergypartners.com for the next 90 days.
    
    About Rock Energy Resources, Inc.
    
    Originally formed in April of 2004 as Rock Energy Partners LP, Rock
Energy Resources is an independent oil and gas company based in Houston,
Texas.  The Company is engaged in the exploration, drilling and recovery of
onshore natural gas and crude oil resources using cutting-edge 3D
technologies. Rock Energy currently produces and sells natural gas and crude
oil from two locations: the Wilcox trend in Colorado County, Texas and the
Monterey Formation in Santa Barbara County, California.  For more information
on the Company, please visit www.rockenergypartners.com
    
    Safe Harbor Forward-Looking Statements
    
    Forward-looking statements made in this release are made pursuant to the
"safe harbor" provision of the Private Securities Litigation Reform Act of
1995. Forward-looking statements made herein are not a guarantee of future
performance. This news release includes forward-looking statements, including
with respect to the future level of business for the parties. These statements
are necessarily subject to risk and uncertainty. Actual results could differ
materially from those projected in these forward-looking statements as a
result of certain risk factors that could cause results to differ materially
from estimated results. Management cautions that all statements as to future
results of operations are necessarily subject to risks, uncertainties and
events that may be beyond the control of Rock Energy Resources, Inc., and no
assurance can be given that such results will be achieved. Potential risks and
uncertainties include, but are not limited to, the ability to procure,
properly price, retain and successfully complete projects, and changes in
products and competition.




For further information:

For further information: Rocky Emery of Rock Energy Resources, Inc.,
CEO,  +1-713-954-3600, or Dodi B. Handy of Elite Financial Communications
Group,  President and CEO, +1-407-585-1080, RCKE@efcg.net, for Rock Energy
Resources,  Inc. Web Site: http://www.rockenergypartners.com

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ROCK ENERGY RESOURCES, INC.

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