Suroco Energy Inc. Provides Update on Canelo Sur-2 Well

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") announces
that it has temporarily suspended operations at the Canelo Sur-2 exploratory
well (the "Well") pending resolution of a community-related dispute in the
region.


The Well has reached the programmed total depth of 9,970 feet, however a
community-related disagreement has arisen that is preventing personnel and
supplies from reaching the drilling site. The Corporation, along with the
Operator, PetroNova Inc. and the drilling contractor are utilizing all available
resources to maintain personnel safety and well security while working with
community representatives and local authorities to identify and resolve the
underlying motivation of the unrest, in order to be able to resume normal
activities. Once operations recommence, a liner will be run in the Well which
will facilitate the ability to acquire cased-hole logs such that a decision can
be made regarding future testing operations. Pending further wireline log
information, testing is initially planned for the Lower 'U' Sand of the Villeta
Formation.


The Well was drilled to evaluate multiple reservoir targets in the Villeta
Formation. The principal targets being the Lower 'U' and the 'T' Sands. Well log
data and mud-gas log data acquired indicate a gross reservoir thickness of
approximately 45 feet with fair quality oil shows and natural fluorescence over
the Lower "U" Sand and a gross reservoir thickness of approximately 69 feet with
poor oil shows over the "T" Sand. Due to adverse hole conditions, a porosity log
was not acquired over both of the Lower 'U' and 'T' Sands, which has hampered
the interpretation. The Villeta Upper 'U' Sand, over which a full suite of well
logs was acquired, indicate the zone to be wet.


The Well is located in the PUT-2 Block (the "Block") located in Colombia's
Putumayo Basin, a Block in which Suroco holds a 25% economic interest.
Application has been made to the Agencia Nacional de Hidrocarburos of Colombia
for its approval of the conversion of Suroco's 25% economic interest to a full
25% undivided working interest in the Block. 


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

Certain statements included in this press release constitute forward-looking
statements under applicable securities legislation. These statements relate to
future events or future performance of the Corporation. All statements other
than statements of historical fact are forward-looking statements. In some
cases, forward-looking statements can be identified by terminology such as
"may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate",
"predict", "potential", "continue", or the negative of these terms or other
comparable terminology. Forward-looking statements or information in this press
release include, but are not limited to, the operational and exploration
activities for the Well (including testing), the evaluation of the Well, the
resolution of community related disputes and issues, expected capital program
(including its allocation), 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. 


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.
New factors emerge from time to time, and it is not possible for management of
the Corporation to predict all of these factors and to assess in advance the
impact of each such factor on the Corporation's business or the extent to which
any factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statement or information.
The forward-looking statements contained herein are expressly qualified by this
cautionary statement. Moreover, neither the Corporation nor any other person
assumes responsibility for the accuracy and completeness of the forward-looking
statements.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release. 


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
(TSXV:SRN)
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