Sonoran Energy Forms Partnership to Develop Oil and Gas Opportunities in Iraq
Tuesday October 26, 1:15 am ET

LONDON--(BUSINESS WIRE)--Oct. 26, 2004--Sonoran Energy, Inc. (OTCBB:SNRN - News) President and CEO Peter Ostenfeld-Rosenthal announced today that the Company has signed a Memorandum of Understanding ("MOU") with a company operating in Iraq to develop oil and gas opportunities in Iraq. The initial MOU with Al Azharan Group will lead to the establishment of a partnership operation specializing in the oil and gas exploration and production activities within this lucrative Iraqi market.
Al Azharan ("AZI") is a well-established company in Iraq with over 28 staff located at its main office in Baghdad, and a further 350 employees present at the Company's various projects throughout the country. AZI brings to the table an extensive network of high-level contacts in Iraq's Oil and Gas sector, as well as within the local government. Currently, AZI has over US$ 40 million in contracts in progress, with an additional potential of $130 Million under current negotiations.

"The experienced team at AZI shall play a vital role in assembling a portfolio of oil and gas assets for Sonoran to firmly establish our presence in the Iraqi market," said Ala Nuseibeh, Sonoran Energy Executive Vice President, Middle East, North Africa, and Caspian. "There are significant opportunities in Iraq that the Company can tackle, and our MOU agreement with a strong local player with proven record of delivering results shall prove necessary to the success of Sonoran Energy in that Country."

"We look forward to our association with the Sonoran Energy management team to develop mutual oil and gas opportunities in Iraq," said Majdi Khayyat, Al Azharan Country Manager. "The Iraqi oil sector is a perfect fit to Sonoran's technical know-how and experience."

"We are very excited about being strongly represented in such a lucrative oil and gas market, which is a first step and important catalyst to the successful identification and winning of major projects in Iraq. We truly believe that AZI, with their strong local ties, to be the ideal partner to build a successful operation in the region. We believe that this shall be accomplished through working closely together in targeting the most interesting and profitable oil and gas projects available, thus setting Sonoran Energy to be an important player in the Iraqi oil industry once the political and security vision clears for international investments," said Peter Ostenfeld-Rosenthal, Sonoran Energy President and CEO.

About Sonoran Energy

Sonoran Energy, Inc. is an independent oil and gas company that is building a diversified portfolio of high value oil and gas assets in North Africa, the Middle East, the Caspian region and North America. With a presence in the UK, Middle East, Asia, and North America, Sonoran Energy explores, develops, and enhances the performance of material and high value oil and gas opportunities, leveraging the Company's technical expertise, and extensive industry and governmental connections.

This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

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Contact:
Sonoran Energy, Inc.
Barry Forward
Investor Relations
(604) 904-0876 or
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Website: www.sonoranenergy.com