Suroco Energy Inc. announces filing of first quarter Financial Statements and


CALGARY, May 27 /CNW/ - Suroco Energy Inc. (TSX Venture Exchange: SRN) (the "Corporation") is pleased to announce that it has filed its Unaudited Consolidated Financial Statements and the related Management's Discussion and Analysis ("MD&A") for the quarter-ended March 31, 2010 on the System for Electronic Document Analysis and Retrieval ("SEDAR").

Copies of these documents can be found on the SEDAR website at


    -   Production to date for the month of May 2010 averaged 1,031 bbl per
        day (net after royalty).

    -   Production expenses for the first quarter of 2010 averaged $10.47 per
        boe (excluding general and administrative costs).

    -   Announced new discovery in Suroriente Block with Pinuna 5 well which
        came online February 11, 2010 and produced an average of 2,300 bbl
        per day (335 bbl per day net after royalties) from February 11 until
        quarter end.

    -   Drilled Pinuna 2 well which was tested and put on production
        subsequent to the end of the quarter.

    -   Exited quarter with production of 956 boe per day.

    -   Entered into a binding letter of intent dated April 20, 2010 for a
        merger with Winchester Oil & Gas, S.A. (the "Proposed Transaction").
        See the Corporation's press releases of April 22, 2010, April 30,
        2010, May 4, 2010 and May 21, 2010 for more information about the
        Proposed Transaction.

    -   Closed acquisition of option on 28% working interest of Llanos 33
        Block. See the Corporation's January 13, 2010 press release for more

    Financial & Operating Highlights

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

                                                     3 months ended March 31
                                                         2010           2009
    Oil and gas revenue ($)                         4,455,314      1,814,948
    Funds flow from operations(1) ($)               1,787,247       (492,261)
      Per share - basic ($)                              0.02              -
      Per share - diluted ($)                            0.01              -
    Net income (loss) ($)                             211,493     (1,441,305)
      Per share - basic ($)                                 -          (0.03)
      Per share - diluted ($)                               -          (0.03)
    Total assets ($)                               35,189,673     36,437,835
    Net working capital(1) ($)                      5,706,804      5,594,153
    Common shares outstanding, end of period
      Basic                                        90,614,730     58,045,240
      Diluted                                     127,863,679     66,563,166

    Average daily net production (boe per day)            581            200
    (1) Non-GAAP measure.

References herein to "boe" mean barrels of oil equivalent derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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 Colombia and Western Canada. 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 Proposed Transaction and has neither approved nor disapproved the contents of the press release. Completion of the Proposed Transaction is subject to a number of conditions, including TSX Venture Exchange acceptance and disinterested shareholder approval. The Proposed Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Proposed Transaction will be completed as proposed or at all. Trading in the securities of the Corporation should be considered highly speculative.

Investors are cautioned that, except as disclosed in a disclosure document to be prepared in connection with the Proposed Transaction, any information released or received with respect to the Proposed Transaction may not be accurate or complete and should not be relied upon.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


For further information: For further information: Alastair Hill, President and Chief Executive Officer of the Corporation or Travis Doupe, VP Finance and Chief Financial Officer of the Corporation, or visit our website at; Telephone: (403) 232-6784, Facsimile: (403) 264-7455

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