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CALGARY, Aug. 29 /CNW/ -- /NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

CALGARY, Aug. 29 /CNW/ - Suroco Energy Inc. (TSX Venture Exchange: SRN) (the "Corporation") is pleased to announce that it has filed its unaudited financial statements and the related Management's Discussion and Analysis for the quarter ended June 30, 2008 on the System for Electronic Document Analysis and Retrieval ("SEDAR").

Copies of these documents can be found on the SEDAR website at www.sedar.com.

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Financial & Operating Highlights

(All references to $ are Canadian dollars unless otherwise noted)

3 months ended June 30 6 months ended June 30

2008 2007 2008 2007
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Financial

Oil and gas revenue,
net of royalties(1) 4,227,590 48,551 4,268,246 92,638

Funds flow from
operations(2) 848,702 92,804 867,830 166,897
Per share -
basic ($) 0.02 0.00 0.02 0.01
Per share -
diluted ($) 0.02 0.00 0.02 0.01
Net income (loss) (475,637) 13,563 (2,381,730) 78,560
Per share -
basic ($) (0.01) 0.00 (0.07) 0.00
Per share -
diluted ($) (0.01) 0.00 (0.07) 0.00
Total assets 37,029,544 9,054,864 37,029,544 9,054,864
Net working capital(2) 7,222,112 8,673,613 7,222,122 8,673,613
Common shares
outstanding, end
of period
Basic 38,961,312 27,366,606 38,961,312 27,366,606
Diluted 40,836,312 29,041,606 40,836,312 29,041,606
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Average daily
production (boepd) 200 9 103 9
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(1) Oil & gas revenue includes 100% of the revenue of Southeast
Investment Corporation, in which Suroco indirectly owns a 31.9%
interest.

(2) Non-GAAP measure. See "Non-GAAP Measures" section within MD&A.

(3) Includes 1,875,000 fully vested options outstanding at June 30, 2008


Highlights

- Completed acquisition of NCT Corporación Petrolera Latinoamericana
S.L. (NCT) with production in U.S.A. and Colombia.

- Acquired significant interests in two additional exploration blocks
in Colombia, Alea 1848-A and Alea 1947-C.

- Received conditional approval from PEMEX to close acquisition of 6%
ownership of Monclova Pirineo Gas, S.A. de CV, a Mexican company
which holds significant development, operation and maintenance
contracts for two gas fields in Mexico.
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Alastair Hill, President and CEO of the Corporation commented, "This is the first quarter that we are recording revenue from Suroco's wholly owned subsidiary. The Corporation's net production exit rate at the end of the quarter of approximately 230 barrels per day is principally derived from the Suroriente association contract in Colombia. As well, the Corporation expects additional production from the previously announced "Trevino Transaction" and "Alentar Transaction" which are expected to close before the end of the year. This level of production covers the majority of our G&A and overhead allowing future capital to be put to work developing our existing assets. To this end, future 3D seismic and development drilling is contemplated for the Suroriente block and 2D seismic will be acquired in two recently awarded exploration blocks in the Putumayo Basin in Colombia."

The Corporation is a Calgary-based junior oil and gas company, which explores for, develops, produces and sells crude oil, natural gas liquids and natural gas in Western Canada and Central and South America. The Corporation's common shares trade on the TSX Venture Exchange under the symbol SRN.

Forward Looking Statements

Certain information regarding the Corporation contained herein may constitute forward looking statements within the meaning of applicable securities laws. Forward looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of facts. Although the Corporation believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will be realized. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. The Corporation's forward looking statements are expressly qualified in their entirety by this cautionary statement.

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The TSX Venture Exchange has in no way passed on the merits of the
aforementioned transactions and has neither approved nor disapproved
the contents of the press release. Trading in the securities of the
Corporation should be considered highly speculative.

The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this press release.
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