Suroco Energy Inc. announces filing of second quarter 2008 financial statements and MD&A



    /NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

    CALGARY, Aug. 29 /CNW/ - Suroco Energy Inc. (TSX Venture Exchange: SRN)
(the "Corporation") is pleased to announce that it has filed its unaudited
financial statements and the related Management's Discussion and Analysis for
the quarter ended June 30, 2008 on the System for Electronic Document Analysis
and Retrieval ("SEDAR").
    Copies of these documents can be found on the SEDAR website at
www.sedar.com.

    
    Financial & Operating Highlights

    (All references to $ are Canadian dollars unless otherwise noted)

                            3 months ended June 30    6 months ended June 30

                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    Financial

    Oil and gas revenue,
     net of royalties(1)    4,227,590       48,551    4,268,246       92,638

    Funds flow from
     operations(2)            848,702       92,804      867,830      166,897
      Per share -
       basic ($)                 0.02         0.00         0.02         0.01
      Per share -
       diluted ($)               0.02         0.00         0.02         0.01
    Net income (loss)        (475,637)      13,563   (2,381,730)      78,560
      Per share -
       basic ($)                (0.01)        0.00        (0.07)        0.00
      Per share -
       diluted ($)              (0.01)        0.00        (0.07)        0.00
    Total assets           37,029,544    9,054,864   37,029,544    9,054,864
    Net working capital(2)  7,222,112    8,673,613    7,222,122    8,673,613
    Common shares
     outstanding, end
     of period
      Basic                38,961,312   27,366,606   38,961,312   27,366,606
      Diluted              40,836,312   29,041,606   40,836,312   29,041,606
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average daily
     production (boepd)           200            9          103            9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Oil & gas revenue includes 100% of the revenue of Southeast
        Investment Corporation, in which Suroco indirectly owns a 31.9%
        interest.

    (2) Non-GAAP measure. See "Non-GAAP Measures" section within MD&A.

    (3) Includes 1,875,000 fully vested options outstanding at June 30, 2008


    Highlights

    -   Completed acquisition of NCT Corporacisn Petrolera Latinoamericana
        S.L. (NCT) with production in U.S.A. and Colombia.

    -   Acquired significant interests in two additional exploration blocks
        in Colombia, Alea 1848-A and Alea 1947-C.

    -   Received conditional approval from PEMEX to close acquisition of 6%
        ownership of Monclova Pirineo Gas, S.A. de CV, a Mexican company
        which holds significant development, operation and maintenance
        contracts for two gas fields in Mexico.
    

    Alastair Hill, President and CEO of the Corporation commented, "This is
the first quarter that we are recording revenue from Suroco's wholly owned
subsidiary. The Corporation's net production exit rate at the end of the
quarter of approximately 230 barrels per day is principally derived from the
Suroriente association contract in Colombia. As well, the Corporation expects
additional production from the previously announced "Trevino Transaction" and
"Alentar Transaction" which are expected to close before the end of the year.
This level of production covers the majority of our G&A and overhead allowing
future capital to be put to work developing our existing assets. To this end,
future 3D seismic and development drilling is contemplated for the Suroriente
block and 2D seismic will be acquired in two recently awarded exploration
blocks in the Putumayo Basin in Colombia."

    The Corporation is a Calgary-based junior oil and gas company, which
explores for, develops, produces and sells crude oil, natural gas liquids and
natural gas in Western Canada and Central and South America. The Corporation's
common shares trade on the TSX Venture Exchange under the symbol SRN.

    Forward Looking Statements

    Certain information regarding the Corporation contained herein may
constitute forward looking statements within the meaning of applicable
securities laws. Forward looking statements may include estimates, plans,
expectations, opinions, forecasts, projections, guidance or other statements
that are not statements of facts. Although the Corporation believes that the
expectations reflected in such forward looking statements are reasonable, it
can give no assurance that such expectations will be realized. These
statements are subject to certain risks and uncertainties and may be based on
assumptions that could cause actual results to differ materially from those
anticipated or implied in the forward looking statements. The Corporation's
forward looking statements are expressly qualified in their entirety by this
cautionary statement.

    
    The TSX Venture Exchange has in no way passed on the merits of the
    aforementioned transactions and has neither approved nor disapproved
    the contents of the press release. Trading in the securities of the
    Corporation should be considered highly speculative.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this press release.
    





For further information:

For further information: Travis Doupe, VP Finance and Chief Financial
Officer of the Corporation, Telephone: (403) 232-6784, Facsimile: (403)
264-7455

Organization Profile

SUROCO ENERGY INC.

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