SAN FRANCISCO, September 26 /CNW/ - Sun Cal Energy Inc., ("Sun Cal
Energy")(OTC BB:SCEY), 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 please to announce
that it has closed an equity financing for $1 Million.
To date, Sun Cal Energy has raised in excess of $4.3 million for the
purpose of advancing exploration projects and investing in high impact oil and
gas assets. Sun Cal Energy remains debt free. The proceeds from this financing
will be used for project development and general corporate purposes.
J. Lewis Dillman, President and Chief Executive Officer of Sun Cal
Energy, states: "Our recent track record of success in the field has allowed
us to reach milestones ahead of schedule, and access necessary capital to
ensure our ability to complete the projects before us. From the capital
raised, in excess of 90% has been directly spent on these properties. We look
forward to seeing our current projects develop cash flow for the Company, and
we eagerly look forward to the further development of our vast and growing
portfolio of oil and gas assets."
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.
South Jonah Prospect - Sun Cal Energy 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.
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
Hobart Prospect - Sun Cal Energy's Hobart Prospect (1,211 acres) in
Washita County Oklahoma is strategically located in the Anandarko 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 - In addition, 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 153 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.
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 San Francisco, California and Calgary
Alberta, Canada. Sun Cal Energy aims to secure and develop a portfolio of oil
and gas properties in the mainland of America. The company is strategically
placed in the Southern San Joaquin Valley in California and is ready to begin
exploration of its 400 acres of prime oil and gas land holdings. Sun Cal
Energy Inc. trades on the NASDAQ OTC BB under the ticker symbol: SCEY - "Sun
Cal Energy Inc. - Providing Energy Solution to America".
On behalf of the Board
J. Lewis Dillman, President and CEO
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.
For further information:
For further information: Sun Cal Energy Corp. J. Lewis Dillman,
1-800-798-8334 President, CEO and Director email@example.com