MGFX Monarch Gulf Exploration Inc New (CE)

Monarch Gulf Exploration, Inc., (OTC Pink Sheets: MGFX) today announced it has entered into an agreement to participate with a�15% working interest in the drilling of the Krotz Springs Prospect.�The well is expected to begin drilling in�the fourth quarter of 2006. Gulf Oil discovered the prolific Krotz Springs Field in 1942 with the drilling of the Haas-Hirsch #E-l well in Section 21-T6S-R7E. This well was drilled to the Upper Eocene Sparta sediments after having encountered gas in multiple Frio and Cockfield reservoirs. The deepest well drilled on the Krotz Springs structure reached a total depth of 15,000 feet, having penetrated most of the Wilcox Formation. The Krotz Springs Field has produced over 900 BCF of natural gas from the sandstone reservoirs of the Lower Frio and Cockfield Formations. The integration of existing well information with modern 3D seismic data has resulted in the identification of a Cockfield objective with significant reserve potential. The cumulative Cockfield (Yegua) production to date is in the range of 108.2 BCF gas and 3,500,000 barrels of condensate. Based upon wells drilled in the Krotz Springs Field, there are four major Cockfield sandstone reservoirs within an overall 800-foot-thick interval. A well will be drilled to a depth of 11,000 TVD to test for significant natural gas and condensate reserve potential. R.E. Bob Jorgensen, CEO, states that this project offers Monarch shareholders additional portfolio and risk diversification by participating in a prospect developed by integrating well data with modern 3D seismic data and is located in an area known for prolific production of natural gas and condensate. �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 herein contains �forward-looking statements� which can be identified by the use of forward-looking terminology such as �believe,� �expect,� �may,� �should,� �up to,� �approximately,� �likely,� or �anticipates� or the negative thereof or given that the future results covered by such forward-looking statements will be achieved. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Monarch Gulf Exploration, Inc., (OTC Pink Sheets: MGFX) today announced it has entered into an agreement to participate with a 15% working interest in the drilling of the Krotz Springs Prospect. The well is expected to begin drilling in the fourth quarter of 2006. Gulf Oil discovered the prolific Krotz Springs Field in 1942 with the drilling of the Haas-Hirsch #E-l well in Section 21-T6S-R7E. This well was drilled to the Upper Eocene Sparta sediments after having encountered gas in multiple Frio and Cockfield reservoirs. The deepest well drilled on the Krotz Springs structure reached a total depth of 15,000 feet, having penetrated most of the Wilcox Formation. The Krotz Springs Field has produced over 900 BCF of natural gas from the sandstone reservoirs of the Lower Frio and Cockfield Formations. The integration of existing well information with modern 3D seismic data has resulted in the identification of a Cockfield objective with significant reserve potential. The cumulative Cockfield (Yegua) production to date is in the range of 108.2 BCF gas and 3,500,000 barrels of condensate. Based upon wells drilled in the Krotz Springs Field, there are four major Cockfield sandstone reservoirs within an overall 800-foot-thick interval. A well will be drilled to a depth of 11,000 TVD to test for significant natural gas and condensate reserve potential. R.E. Bob Jorgensen, CEO, states that this project offers Monarch shareholders additional portfolio and risk diversification by participating in a prospect developed by integrating well data with modern 3D seismic data and is located in an area known for prolific production of natural gas and condensate. "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 herein contains "forward-looking statements" which can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "should," "up to," "approximately," "likely," or "anticipates" or the negative thereof or given that the future results covered by such forward-looking statements will be achieved. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.