Sun River Energy, Inc. Announces Letter Of Intent To Develop Oil Properties In Colfax County, New Mexico And Panola County, Texas

DALLAS, May 14, 2012  /PRNewswire/ -- Sun River Energy, Inc. (OTC:BB: SNRV).  On May 14, 2012, Sun River Energy, Inc. (the "Company" or "Sun River") announces it has signed a non-binding Letter of Intent to enter into a joint venture with Dallas based Strata Resources, Inc. ("Strata").  The Letter of Intent between the parties anticipates the recompletion of one existing wellbore and the drilling of five (5) new wells, all of which will primarily target oil. 

For the first time, Sun River will drill on its massive Colfax County, New Mexico property.  Specifically, Sun River will receive a 25% carried working interest in 3 wells drilled to test the oil bearing formations above 5,000' in Colfax County, New Mexico.  It is anticipated that prior to spud of the first well, approximately 10 miles of new 3-D seismic will be shot and processed.

In Texas, Sun River is to receive a cash payment and 50% carried working interest in the recompletion of an existing well bore and in two (2) new wells drilled to the Pettet formation in Panola County, Texas.

Both drilling projects in each state will be covered by an area of mutual interest between the parties that allows for significant future development.

Donal R. Schmidt, Jr., the Company's CEO and President, said:

"The carried working interest Sun River negotiated gives us the chance to participate in the development of these properties at no cost to the Company.  Strata will bear all costs associated with drilling, completing and bringing these wells to production.  Additionally, Strata is required to shoot 10 miles of 3-D seismic in New Mexico to supplement the 2-D seismic shot in the 1960's which we reprocessed last year.

"This venture allows us to execute on our previously stated plan to rapidly move to oil.  Drilling and completion efforts are expected to begin within 45 days in Panola County and within 120 days in Colfax County.  Revenues from these activities are expected within the Company's second quarter.  Both drilling projects are subject to additional due diligence which is ongoing by both parties and is expected to be concluded quickly.

"I think these two projects and the steps management has recently taken to reduce overhead by 25% will result in the Company becoming cash-flow positive by the third quarter."

Chuck Miller, Strata Resources, said:

"Strata Resources is pleased to have the opportunity to participate in these two exciting and impactful projects. We are moving forward expeditiously to the due diligence process."

About Sun River Energy, Inc.:

Sun River Energy, Inc. is a Dallas-based, oil and gas exploration and production company.  For further information on the Company, please visit our website www.snrv.com.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements" (statements which are not historical facts) made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations rather than historical facts and they are indicated by words or phrases such as "anticipate," "could," "may," "might," "potential," "predict," "should," "estimate," "expect," "project," "believe," "plan," "envision," "continue," "intend," "target," "contemplate," or "will" and similar words or phrases or comparable terminology. We have based such forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward- looking statements are only predictions and involve known and unknown risks and uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, many of which are beyond our control. These factors include, but are not limited to, the time to consummate the proposed development, completion and extraction; the timing and extent of changes in market conditions and prices for natural gas and oil; the timing and extent of the Company's success in discovering, developing, producing and estimating reserves; the economic viability of, and the Company's success in drilling, the Company's ability to fund the acquisition, development, completion and extraction of oil and gas assets and the Company's planned capital investments; the Company's future property acquisition or divestiture activities; increased competition; and any other factors listed in the reports the Company has filed and may file with the Securities and Exchange Commission.  Investors are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date they were made. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new information or the occurrence of unanticipated events or otherwise.

SOURCE Sun River Energy, Inc.

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