Sharon Energy Ltd. announces results for the year ended March 31, 2008

    (TSX-V: SHY)

    CALGARY, June 18 /CNW/ - Sharon's financial and operating results for the
fiscal year ended March 31, 2008, were lower than the prior year due to
reduced production volumes partially offset by higher natural gas prices.
Sharon hopes to reverse this trend with the results of its exploration and
development program in the coming fiscal year.
    All dollar figures are United States dollars.

    Exploration and Production

    United States

    During the 2008 fiscal year Sharon's focus has been on developing
prospects along the Wilcox trend in southern Texas.

    Black Owl, Wharton County, Texas - Working Interest 24.4%

    The Black Owl No. 1 well began production in November 2007 and continues
to be a steady producer averaging 1.44 MMcfd (351 Mcfd) and 20 Bopd (4.9 Bopd
net). Sharon is actively pursuing additional prospects in the area.

    N.W. Speaks, Lavaca County, Texas - Working Interest 35.8%

    During the fourth quarter ended March 31, 2008, the Robertson No. 1 well
was drilled to a total depth of 13,575 feet. Based on the Company's log
analysis, the well has encountered several Wilcox gas zones, two of which were
the primary objectives for the well and these two sands have been proven
productive within the same structure. The well is currently producing
1.0 MMcfd (358 Mcfd net) of natural gas and 15 Bopd (5.4 Bopd net), at
1075 psi flowing pressure, up 4.5 inch production casing. Production tubing
for this well is scheduled to be installed in June 2008, which is expected to
improve the well performance.

    Neighborhood Field, Lavaca County, Texas - Working Interest BPO 6.0 %
    APO 13.46 %

    Subsequent to March 31, 2008, Sharon participated in drilling the Ruebush
No. 1 well which was drilled to a total depth of 16,200 feet. Based on the
Company's log analysis the well encountered several potential Wilcox gas
zones. Completion operations are scheduled to commence during June 2008.

    Hound Dog, Lavaca County, Texas - Working Interest 25.281 %

    The Allen Estate No. 1 well was drilled by Sharon as operator to a total
depth of 3,200 feet. The well encountered two prospective gas zones in the
Frio formation and two prospective gas zones in the Miocene formation.
Completion operations are scheduled to commence during June 2008.


    In Canada, for the year ended March 31, 2008, Sharon participated in
drilling or re-entering 8 wells (1.55 net) resulting in 1 oil well (0.25 net),
4 gas wells (0.75 net) and 3 dry holes (0.55 net). Two natural gas discoveries
from the fall of 2007 are being further developed by the Company. One
discovery is currently producing at 750 Mcfd (75 Mcfd net) while the other is
being tied-in for first production in June.


    Sharon reported revenue for the year ended March 31, 2008, of
$2.8 million compared with $3.5 million in the prior year and cash flow for
the year was $1.2 million compared with $2.0 million for the prior year.
Sharon reported a loss for the 2008 fiscal year of $757,000 or $0.01 per share
versus a loss of $82,000 or nil per share for the 2007 fiscal year.
    Capital spending for the year ended March 31, 2008, totaled $6.0 million
compared with $4.1 million for the prior year. Capital spending was financed
from cash flow, capital dispositions and a CDN $9.0 million equity financing
completed in June 2007.
    Sharon exited the year with working capital of $412,000 versus net debt
of $2.6 million at the beginning of the fiscal year.


    For the year ended March 31, 2008, production declined 36% to 217 BOEd
compared with 338 BOEd for the prior year. Production rate declines at the
Hound Dog field in Lavaca County, Texas, and the loss of production from the
Hancock No. 2 well (Allen Ranch field) in Colorado County, Texas, combined
with the rapid decline of several wells at the Jaslan field in Canada to
reduce the Company's overall production. Wells brought on production late in
the fiscal year and planned for the new fiscal year should significantly
increase production during the 2009 fiscal year.

    Reserves and Reserve Values

    The independent engineering evaluation of Sharon's properties assigned
proved reserves before royalties of 662,000 BOE and total reserves before
royalties of 2 million BOE at March 31, 2008. These reserve estimates result
in a before tax present value of estimated future net revenues, discounted at
10%, of CDN $35.7 million. Detailed information will be contained in the
reserves data report which the Company plans to file by the end of June.

    Business Outlook

    Sharon's management has a favourable outlook for natural gas prices
through the balance of the 2008 calendar year and into 2009. High natural gas
prices in Canada and in the United States are supported by low year on year
natural gas storage levels, high crude oil prices and particularly high coal
prices. Coal competes directly with natural gas in the production of
electricity and a rise or drop in coal prices is often an early indicator of
increasing or decreasing natural gas prices. Currently, world coal prices are
at record high levels with the current coal spot market very tight.
    The coming fiscal year will be a pivotal time for the Company as its
exploration and development plans aim to reverse the declining production and
cash flow trend of the last two years. Sharon plans to match capital spending
to operating cash flow; however, at least two significant development wells
are currently scheduled to be drilled in Texas during the year. Additional
development is also planned for the two new discovery areas in Canada.
Sharon's exploration program will focus on a number of shallower prospects in
Texas that can be managed within the Company's capital budget.

                                                            Years Ended
    ($ Thousands, except per share amounts)                  March 31
    (U.S. Dollars)                                    -----------------------
                                                           2008         2007
      Total revenue                                   $   2,835    $   3,484
      Cash flow from operations                       $   1,175    $   1,995
        per share, basic and diluted                  $    0.02    $    0.04
      Loss for the period                             $    (757)   $     (82)
        per share, basic and diluted                  $   (0.01)   $    0.00
      Property, plant and equipment
        Capital additions                             $   5,984    $   4,095
        Dispositions                                  $     330    $     442
      Working capital (net debt)                      $     412    $  (2,629)
      Total assets                                    $  21,901    $  14,658
      Total shares outstanding, at period end            75,394       52,919


        Gas (MMcfd)                                         1.2          1.8
        Oil (Bopd)                                           24           30
        BOEd (6 Mcf = 1 Bbl)                     217          338

      Product Prices
        Gas ($/Mcf)                                   $    6.78    $    6.01
        Oil ($/Bbl)                                   $   67.19    $   57.05
      Reserves (proved plus probable,
       future costs and prices)
        Gas (Mmcf)                                       11,183       10,038
        Oil (MBbl)                                          145          120
        BOE (MBbls)                                       2,009        1,793
        Present value, before tax ($ CDN MM at 10%)   $    35.7    $    34.9

    BOE Presentation - the term barrels of oil equivalent (BOE) may be
    misleading, particularly if used in isolation. A BOE conversion ratio of
    6 Mcf: 1Bbl is based on an energy equivalency conversion method primarily
    applicable at the burner tip and does not represent a value equivalency
    at the wellhead. All BOE conversions in this report are derived by
    converting gas to oil in the ratio of six Mcf of gas to one Bbl of oil.

    Financial Reporting - all numbers are reported in U.S. dollars.

    Sharon is an oil and gas exploration and production company based in
Calgary, Alberta. Sharon's current focus is on shallow gas developments in
southern Alberta, natural gas exploration in central and southern Alberta and
deep gas exploration in Texas.

    ADVISORY: Certain information regarding the Company in this News Release
including management's assessment of future plans and operations, the use of
proceeds from the offering and the anticipated closing date of the offering,
may constitute forward-looking statements under applicable securities laws and
necessarily involve risks including, without limitation, risks associated with
oil and gas exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, capital expenditure costs, including drilling, completion and
facilities costs, unexpected decline rates in wells, wells not performing as
expected, incorrect assessment of the value of acquisitions, failure to
realize the anticipated benefits of acquisitions, delays resulting from or
inability to obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources. As a consequence,
actual results may differ materially from those anticipated in the
forward-looking statements. Readers are cautioned that the foregoing list of
factors is not exhausted. Additional information on these and other factors
that could effect the Company's operations and financial results are included
in reports on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website ( and at the Company's
website ( Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news release
and the Company does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be required by
applicable securities laws.


For further information:

For further information: H.C. (Kip) Ferguson, III, President, Houston,
Texas, SHARON ENERGY LTD., Telephone: (713) 789-5395, Fax: (713) 789-8454;
Robert W. Lamond, Chairman, Calgary, Alberta, SHARON ENERGY LTD., Telephone:
(403) 269-9889, Fax: (403) 269-9890; TSX-V: SHY

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