VANCOUVER, April 23 /PRNewswire-FirstCall/ - San Telmo Energy Ltd.
(OTCBB: STUOF - News; TSX-V: STU - News) is pleased to announce an update
on current operations.

McLeod: Production Commences

San Telmo's well at McLeod has
been successfully tied-in and is
producing gas and condensate. It
is currently producing at a
restricted rate of
approximately 600 mcfd with
18 bbls condensate/day with a
tubing and casing pressure of
12,550 kpa and 13,400 kpa
respectively. The well has been
on restricted production due to
lack of adequate compression at
our tie-in point. This is due to
the fact that San Telmo's
McLeod well, if produced at the
expected sustainable rate of
2-3 mmcfd, would back out the
majority of gas in the regional gathering system. San Telmo is currently
working with the owner of the gathering system to alleviate this bottleneck.

Gordondale: Construction Completed, Land Position Increased

Installation of two storage tanks at Gordondale and construction of the 3.5
kilometer gas pipeline has been completed. San Telmo is currently awaiting
government approval of its Facilities Emergency Response Plan (ERP), which is
required to initiate production. The well is ready to begin producing oil and
gas and San Telmo expects production to commence without delay following
approval of the ERP.

San Telmo has increased its position at Gordondale with the purchase, via
Crown Land Sale, of one additional section of land. This recently acquired
parcel is located immediately adjacent to the company's current Gordondale
position. San Telmo has a 100% working interest in this new section at
Gordondale.

Boundary Lake: Land Acquisition

San Telmo has acquired, through a Crown Land Sale, one section of land
immediately north of its current position at Boundary Lake. San Telmo's
Boundary Lake prospect is a 4,900 feet (1,500 meter) Triassic Boundary Lake
target. The prospect is offsetting a Boundary Lake pool that has produced
651,000 barrels of oil to date and is situated between two wells, which
produced 47,000 and 8,000 barrels of oil respectively. Boundary Lake is
located in northwestern Alberta near the Alberta-B.C. border.

ABOUT SAN TELMO ENERGY LTD.

San Telmo Energy Ltd. is an emerging oil and gas company with an experienced
management team. Operated through its wholly owned subsidiary San Telmo
Energy Inc. of Calgary, Alberta, San Telmo Energy Ltd. is focused on acquiring,
developing and producing proven developed and underdeveloped reserves
which offer long term value for the company.

FORWARD-LOOKING STATEMENT

This release may contain forward-looking statements, within the meaning of
the "safe-harbour" provision of the Private Securities Litigation Reform Act
of 1995, regarding San Telmo Energy's business or financial condition. Actual
results could differ materially from those described in this news release as a
result of numerous factors, some of which are outside of the control of the
company.