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Wednesday, 08/10/2005 3:10:54 PM

Wednesday, August 10, 2005 3:10:54 PM

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We are updating the San Telmo database. If you wish to continue receiving updates from the company, please click on the following link and fill in your information. Thanks for your interest in San Telmo Energy. http://integratir.com/requestinfo.asp?ticker=STUOF&title=null

San Telmo Energy spuds new well at Gordondale and updates Teepee Creek drilling information

Calgary , AB , August 9, 2005 - San Telmo Energy Ltd. (OTCBB: STUOF, TSX-V: STU) is pleased to announce that a well at location 16-22-79-9-W6 has been spudded. This is the first development well in the Gordondale project, and is owned 100% by the company.

The well is expected to take approximately 8 days to drill to a target depth of 1650 meters (5413 feet), followed up by a potential testing program.

The 8-3 Teepee Creek development well has been drilled and cased. Testing is expected to commence during the latter half of August.

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ABOUT SAN TELMO ENERGY LTD

San Telmo Energy Ltd. is an emerging oil and gas company with an experienced management team. Operated through its wholly owned subsidiary San Telmo Energy Inc. of Calgary, Alberta, San Telmo Energy Ltd. is focused on production of, exploring for, and developing reserves which offer long term value for the company.

FOR FURTHER INFORMATION

San Telmo Energy Corporate Communications

1.866.880.5670

Email: corporate@santelmoenergy.com. To find out more about San Telmo Energy Ltd. (OTCBB: STUOF, TSX-V: STU) visit our website at www.santelmoenergy.com

FORWARD-LOOKING STATEMENT

This release may contain forward-looking statements, within the meaning of the "safeharbour" provision of the Private Securities Litigation Reform Act of 1995, regarding San Telmo Energy's business or financial condition. Actual results could differ materially from those described in this news release as a result of numerous factors, some of which are outside of the control of the company.

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


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