Suroco Provides Update of Cohembi Oilfield Appraisal Drilling Program

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") is pleased
to announce that the Cohembi-11 appraisal well has been successfully drilled and
placed on production and drilling has now commenced from the same multi-well pad
for the Cohembi-8 development location. 


Mr. Alastair Hill, the Corporation's President and Chief Executive Officer
commented, "The Cohembi-11 well is the first location drilled on older vintage
2D seismic and has now extended the oil-bearing area beyond what has been mapped
on the more recent 3D seismic survey. This well result has significantly
increased the total oil column height in the Cohembi oilfield and importantly
validates our 2D seismic mapping methodology, which has identified a number of
Villeta N exploration targets in the Suroriente Block and on our exploration
acreage elsewhere in the Putumayo Basin. The drilling program will now re-focus
within the area of 3D seismic coverage, first in the area around the Cohembi-1
well where water injection will commence in Q4 2012, and then on delineation of
the highly prospective southern area of the field, where we believe the majority
of the discovered oil in place is located."


Cohembi-11 Well

The Cohembi-11 well was spudded on July 14, 2012 and drilled directionally to
the west from the Cohembi-4 surface pad, approximately 1.2 kilometers from the
nearest bottomhole well location. The well reached a total depth of 9223 feet
(8750 feet true vertical depth), and encountered 5 feet of oil pay with no
indication of an oil-water contact. The operation from spud to production was
completed in 24 days, which is a record time for the Suroriente Block. These
results have increased the proven vertical oil column in the Cohembi field by 54
feet to a total of 148 feet, with no water contact encountered to date. It was
subsequently cased and completed, and after initial cleanup is producing at a
stabilized rate of approximately 240 barrels of oil per day (35 barrels per day
net to the Corporation after royalty) of 17 API gravity oil with zero percent
watercut. The Cohembi-11 well is expected to continue production at this rate,
and has effectively delineated the north-western extent of the Cohembi oil
field. 


Operations Update

The drilling rig has now commenced drilling the third directional well from this
multi-well pad, Cohembi-8, which is targeting a low-risk development location in
between the existing Cohembi-4 and Cohembi-5 bottomhole locations. The rig will
then drill two directional wells from the existing Cohembi-2 multi-well pad.
These wells will fully develop the area around the Cohembi-1 well, which is
scheduled for conversion to water injection in October of 2012. Following the
new Cohembi-2 pad locations, the rig will commence drilling southern area
delineation wells from the planned multi-well pad at Cohembi-6.


Further details explaining the Corporation's activities and 2012 drilling
program are contained in a presentation on the Corporation's website at
www.suroco.com.


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. The Corporation's common shares trade on the TSX Venture Exchange
under the symbol SRN.


Forward-Looking Statements

This press release contains forward-looking statements relating to the
operational and exploration activities for Suroco, the evaluation of certain
prospects in which the Corporation holds an interest, estimated number of
drilling locations, expected capital program (including its allocation),
production growth, and other statements that are not historical facts. Readers
are cautioned not to place undue reliance on forward-looking statements, as
there can be no assurance that the plans, intentions or expectations upon which
they are based will occur. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties, both general
and specific, that contribute to the possibility that the predictions,
estimates, forecasts, projections and other forward-looking statements will not
occur, which may cause actual performance and results in future periods to
differ materially from any estimates or projections of future performance or
results expressed or implied by such forward-looking statements. These
assumptions, risks and uncertainties include, among other things, the state of
the economy in general and capital markets in particular; fluctuations in oil
prices; the results of exploration and development drilling, recompletions and
related activities; changes in environmental and other regulations; risks
associated with oil and gas operations and future exploration activities; the
need to obtain required approvals from regulatory authorities; product supply
and demand; market competition; political and economic conditions in the country
in which the Corporation operates; and other factors, many of which are beyond
the control of the Corporation. You can find an additional discussion of those
assumptions, risks and uncertainties in Suroco's Canadian securities filings. 


Readers should also note that even if the 2012 drilling program as proposed by
Suroco is successful, there are many factors that could result in production
levels being less than anticipated or targeted, including without limitation,
greater than anticipated declines in existing production due to poor reservoir
performance, mechanical failures or inability to access production facilities,
among other factors.


The forward-looking statements contained in this press release are made as of
the date of this press release. Except as required by law, Suroco disclaims any
intention and assumes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
Additionally, Suroco undertakes no obligation to comment on the expectations of,
or statements made by, third parties in respect of the matters discussed above.
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