SRN

(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-13 appraisal well has been successfully drilled and
placed on production and water injection for improved recovery in the Cohembi
oilfield commenced on December 14, 2012. Average monthly production for the
Corporation during December 2012 was a record high of 1,271 barrels of oil per
day net to the Corporation after royalty. 


Mr. Alastair Hill, the Corporation's President and Chief Executive Officer
commented, "The commencement of water injection in the Cohembi oilfield is an
important milestone for reserve development and increased recovery from this
large field. We will continue with appraisal drilling at Cohembi in 2013, with
the target of full field development and full pressure maintenance by early
2014. "


Cohembi-13 Well

The Cohembi-13 well was spudded on November 22, 2012 and drilled directionally
to the south from the Cohembi-2 surface pad, approximately 1,000 meters from the
nearest bottomhole well location. The well reached a total depth of 9,534 feet
(8,649 feet true vertical depth), and encountered 12 feet of high quality net
oil pay with no indication of an oil-water contact. Cohembi-13 was subsequently
cased and completed, and commenced production into the Cohembi facility via the
existing 4-inch flowline and a newly constructed 6-inch group flowline.
Production during the first 6 days averaged 573 barrels of oil per day (84
barrels of oil per day net to the Corporation after royalty) with no significant
water production. The electric submersible pump is operating at the low end of
its producing range, and may be increased further depending on pump and motor
performance.


Cohembi Development Update

Water injection for improved recovery within the Cohembi oil field commenced on
December 14, 2012 and averaged 2,700 barrels of water injected per day during
the remainder of the month. Subsequent to the initiation of water injection at
the Cohembi-1 well, the surrounding wells Cohembi-2, Cohembi-5, Cohembi-7, and
Cohembi-12 have shown a distinct change in the established bottomhole pressure
trends during December that the Corporation interprets as response to water
injection. No significant water production has been observed from any of the
Cohembi oil wells to date. The initiation of water injection and the subsequent
pressure response at producing wells are key elements for recognition of
improved recovery potential in the proven reserve category. This information
will be submitted to the Corporation's independent reserve evaluator for
consideration in the upcoming 2012 year-end reserve evaluation.


The drilling rig will now be moved to the newly constructed Cohembi-6 pad to
drill three delineation wells in the southern area of the Cohembi field.


Suroriente Production Update

Total production from the Suroriente field during December 2012 averaged 7,558
barrels of oil per day (1,271 barrels of oil per day net to the Corporation
after royalty). This record level of production for the Corporation in the
Suroriente field was achieved by the addition of production from the Cohembi-12
and Cohembi-13 wells, along with the early benefit of pressure maintenance by
water injection at Cohembi-1. The exit production rate for December was
approximately 1,400 barrels of oil per day net to the Corporation after royalty.


Further details explaining the Corporation's activities 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, exploration and development 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 rates, 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 future development 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Suroco Energy Inc.
Alastair Hill
President and Chief Executive Officer
(403) 232-6784
(403) 232-6747 (FAX)


Suroco Energy Inc.
Travis Doupe
VP Finance and Chief Financial Officer
(403) 232-6784
(403) 232-6747 (FAX)
www.suroco.com

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