SunOcean Energy Ltd.

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Description

SunOcean Energy Ltd. has retained CB Securities Inc. to sell the company or its assets. SunOcean's assets include three primary producing properties in Alberta. Total production is 190 barrels of oil per day. The Garrington property is in Townships 34 and 35, Ranges 2 and 3 W5M in central Alberta. SunOcean holds varying working interests in 8,800 acres of land. Production is currently 134 barrels of oil per day from 19 wells (55 barrels of oil; 366,000 cubic feet of gas; 18 barrels of liquids). Producing zones include Cardium, Viking, Glauconitic, Ellerslie and Pekisko. Most of the production is operated by SunOcean. Upside includes 16 recompletions or drilling locations. The Rainbow Lake property is in Townships 108 to 110, Ranges 2 to 4 W6M in northwestern Alberta. SunOcean holds 50% to 100% working interests in 70 sections of land. Multi-zone potential includes the Quaternary (Glacial Drift), Mannville (Bluesky-Gething) and the Devonian (Wabamun). Production is currently 272,000 cubic feet per day net. SunOcean has identified 31 opportunities including two tie-ins, one recompletion, five re-drills, and 23 new locations. These prospects are a combination of high impact Glacial Drift locations, stepout Gething locations, and regional resource Wabamun locations. Additional opportunities are contingent on the success of first phase drilling programs. The Karr Creek property is in Township 63, Range 3 W6M in west-central Alberta. SunOcean has a high working interest in the southeast quarter of Section 24-63-03 W6M, which contains potential for a prolific Banff oil producer and Wabamun reef. Development is currently a producing Banff oil well at 08-24-63-03 W6M and a cased Cretaceous gas well at 02-24-63-03 W5M. In 2008, a third party farmed in and agreed to pay 100% of costs to equip and tie-in the 08-24 Banff oil well. SunOcean is operator and retains 50% working interest after payout (20% before payout) of the approximate $450,000 of capital costs to tie-in the well. Gross production is expected to be 150 barrels per day. The bid due date is May 5. Contact Darryl Derouin, 403-781-7041.