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Sonoran Energy to Acquire East Texas Oil Production.


LOS ANGELES -- Sonoran Energy, Inc. (OTCBB OTCBB

See OTC Bulletin Board (OTCBB).
:SNRN SNRN Sorry, Not Right Now ) President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  Peter Ostenfeld-Rosenthal announced today that the Company has signed a purchase and sales agreement to acquire three producing oil properties in East Texas. The properties, which subject to complete due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired.  are being purchased from the Rippy Oil Company, are located in three separate oil fields known as the JRC JRC
abbr.
Junior Red Cross
, Lisa Layne and Ann McKnight (Paluxy) Fields. Currently production from the properties is approximately 210 barrels of oil per day (bopd) with the opportunity to increase production relatively quickly to 300 bopd through installation of electrical submersible pumps on some of the wells. Net reserves of up to 300 thousand barrels of proven oil have been identified for these assets, which are being acquired in an all cash transaction. Potential also exists to add additional reserves through the drilling of new infill wells on the properties.

"These high-quality, long-life oil fields give Sonoran Energy its first production from Texas and augment our growing suite of assets in North America," said Peter Ostenfeld-Rosenthal, Sonoran Energy's President and CEO. "Sonoran's holdings in Texas and Louisiana now exceed 18,000 gross acres, establishing a domestic base with strong potential."

The JRC and Lisa Layne oil fields located adjacent to each other in Wood County, Texas Wood County is a county located in the U.S. state of Texas. As of 2000, the population was 36,752. Its county seat is Quitman6. Wood County is one of 46 prohibition or entirely dry counties in the state of Texas. Geography
According to the U.S.
, consist of productive oil zones in the Paluxy sands at about 7,300 feet and the Subclarksville sands at 5,150 feet. These two oil fields are producing 170 barrels of oil a day (bopd) from six wells in the Paluxy formation and two wells in the Subclarksville zone. Substantial work has been performed on the properties over the past 15 months to upgrade surface and subsurface equipment and operations. Upside potential Upside potential

The amount by which analysts or investors expect the price of a security may increase.


upside potential

The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar
 exists with continued improvement of production from currently installed electric submersible pumps (ESP (1) (Enhanced Service Provider) An organization that adds value to basic telephone service by offering such features as call-forwarding, call-detailing and protocol conversion. ), and replacement of existing rod pumps with new ESP pumps. Further upside potential to add additional reserves exists in re-drilling of one of the existing wells and possible additional infill and horizontal wells.

The Ann McKnight Unit is located in the Ann McNight (Paluxy) Field in Smith County and is currently producing 40 barrels of oil per day. Improved production can be achieved by installation of ESP's in two existing wells. Additional reserves have been identified through drilling a well on the crest of the structure and through possible tertiary recovery.

About Sonoran Energy

Sonoran Energy, Inc. is an independent oil and gas company with a presence in Iraq, Jordan, Norway and North America. The Company intends to build a portfolio of high producing oil and gas fields in the Middle East and the Caspian Region - with production potential in excess of 50,000 barrels of oil per day (BOEPD BOEPD Barrels of Oil Equivalent Per Day ), and is pursuing material and high value global oil and gas upstream opportunities. Sonoran Energy is concurrently pursuing high value upstream opportunities in North America.

This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995.
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Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Jul 20, 2004
Words:539
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