MGFX Monarch Gulf Exploration Inc New (CE)

Monarch Gulf Exploration, Inc. (Pink Sheets:MGFX) announced today it has entered into an agreement with Daybreak Oil and Gas, Inc. to jointly develop Daybreak�s 50% interest in their Eastslopes Project, located in the San Joaquin Valley of California. Monarch and Daybreak along with their other industry partners plan to conduct a 3-D seismic survey this year. The $1,750,000 survey will encompass approximately 15,000 acres. A nine well drilling program is planned to begin in the first quarter of 2007. The San Joaquin Basin is a prolific oil producing area with a long history of production. In the vicinity of the East Slopes Project, two prominent fields produced 435.5 MMB (million barrels) and 20.6 MMB of oil respectively from the Pyramid Hills and Vedder Sands. Historic production has been from shallow depths of 1,000 to 3,000 feet and the oil is of low to medium gravity (13 to 22 API). Chet Pohle, Consulting Geochemist for Monarch states that this project offers the opportunity for the discovery of multiple pools of oil using modern 3-D seismic data, which lowers the exploration risk. SAFE HARBOR STATEMENT under Private Securities Litigation Reform Act of 1995: Certain statements contained herein constitute �forward looking statements� within the meaning of the Private Securities Litigation Reform Act of 1995. Information contained in this statement may include terminology such as �believe� �expect� �should� �approximately� �likely� or �anticipates� or the negative thereof or given that the future results covered by such forward looking statements will be achieved. There is a number of known and unknown risks. Uncertainties and other factors may cause the actual results to vary significantly with the above forward looking statements. Monarch Gulf Exploration, Inc. (Pink Sheets:MGFX) announced today it has entered into an agreement with Daybreak Oil and Gas, Inc. to jointly develop Daybreak's 50% interest in their Eastslopes Project, located in the San Joaquin Valley of California. Monarch and Daybreak along with their other industry partners plan to conduct a 3-D seismic survey this year. The $1,750,000 survey will encompass approximately 15,000 acres. A nine well drilling program is planned to begin in the first quarter of 2007. The San Joaquin Basin is a prolific oil producing area with a long history of production. In the vicinity of the East Slopes Project, two prominent fields produced 435.5 MMB (million barrels) and 20.6 MMB of oil respectively from the Pyramid Hills and Vedder Sands. Historic production has been from shallow depths of 1,000 to 3,000 feet and the oil is of low to medium gravity (13 to 22 API). Chet Pohle, Consulting Geochemist for Monarch states that this project offers the opportunity for the discovery of multiple pools of oil using modern 3-D seismic data, which lowers the exploration risk. SAFE HARBOR STATEMENT under Private Securities Litigation Reform Act of 1995: Certain statements contained herein constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Information contained in this statement may include terminology such as "believe" "expect" "should" "approximately" "likely" or "anticipates" or the negative thereof or given that the future results covered by such forward looking statements will be achieved. There is a number of known and unknown risks. Uncertainties and other factors may cause the actual results to vary significantly with the above forward looking statements.