Sun Cal Energy Inc. Announces Acquisition of Jonah Prospects in Wyoming
Aug 15, 2007 09:00:19 (ET)
SAN FRANCISCO, Aug 15, 2007 (BUSINESS WIRE) -- Sun Cal Energy Inc. (NASD OTC BB:SCEY), an energy exploration company focused in the Southern San Joaquin Valley of California, the Anadarko Basin of Oklahoma, and the Breton Sound area in offshore Louisiana in pleased to announce the addition of 6,000 acres of high impact gas properties in the Jonah Field area of Wyoming.
Sun Cal Energy Inc. has agreed to acquire a 100% working interest in 6,000 acres of leases in the Jonah Field region of Wyoming - the second largest proven gas reserve in the United States. This is the fourth core exploration and development region for Sun Cal Energy. Sun Cal'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.
With current well spacing regulations, Sun Cal can drill up to 37 wells on this acreage. With technology developed in the Jonah and Pinedale fields, current completion techniques estimate gas in place between 1.0 and 3.0 BCF per well. As such, South Jonah and West Jonah could provide between 37 BCF and 111 BCF of recoverable Reserves at a value of $222 million to $667 million.
About the Jonah Prospect
The Jonah Field and the Pinedale Anticline are acknowledged as the premier gas fields in the Rocky Mountains. These fields are located in Wyoming's Greater Green River Basin. According to the Wyoming State Geological Survey, the Greater Green River Basin contains approximately 26 TCF of natural gas which is the largest reserve in the State. The Jonah Field is estimated to contain 7 to 10 TCF of Natural Gas, which currently produces from more than 500 wells. Currently, EnCana, British Petroleum, Ultra Petroleum and Yates Petroleum are among the major players working in this area.
Commenting on these developments, Lewis Dillman, President and Chief Executive Officer of Sun Cal Energy Inc. states: "We are very pleased to add an asset of this class to our expanding portfolio of high impact oil and gas properties. The Jonah Field is a world class natural gas development area, with plans to allow the development of more than 3,000 new wells. We look forward to the opportunity of further developing this asset and participating in the future success of the area."
Further Information
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.
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