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Press release from CNW Group

Sure Energy Inc. announces Redwater drilling and general operations update

Tuesday, September 20, 2011

Sure Energy Inc. announces Redwater drilling and general operations update11:57 EDT Tuesday, September 20, 2011CALGARY, Sept. 20, 2011 /CNW/ - Sure Energy Inc. (TSX: SHR) ("Sure Energy" or "the Company") is pleased to report the production test results of its 02/11-2-58-23W4M Redwater North horizontal well. The Viking formation was tested for 68 hours and flowed 220 barrels of oil per day for the final 24 hours of the test, with a 20-25% watercut. The Company expects the well to be on production September 21, 2011 at initial rates in excess of 200 barrels of oil per day while flowing. The Company's offsetting producers flowed for approximately a month prior to being put on pump.The well is 100% owned by the Company and will qualify for the Alberta Government's Horizontal Oil New Well Royalty Rate of 5% for 18 months, to a maximum of 50,000 barrels. The well is a single leg cased monobore which was frac'd in 18 intervals.The Company also recently completed the production testing of its 4-4-56-20W4M horizontal well in the Viking formation at South Redwater. This well swabbed at a rate of 366 barrels of oil per day with a 9% average watercut over the final 6 hours of a 75 hour production test. Fluid levels remained stable during the swabbing operation with the final fluid level at 270 metres from surface. This well will be shut in for two weeks prior to being put on stream to determine an initial reservoir pressure as per ERCB regulations.The well is 80% owned by the Company and will qualify for the Alberta Government's Horizontal Oil New Well Royalty Rate of 5% for 18 months, to a maximum of 50,000 barrels. It will come on production October 1st, 2011. It is a single legged monobore frac'd in 11 intervals.The Company participated in two 40% working interest horizontal wells at South Redwater in the second quarter of 2011. One of these wells came on stream on August 20, 2011 and the second is expected to come on stream in early October.The Company has 9,535 net acres of land on the Redwater Viking light oil trend and recognizes a minimum of 42 gross (32 net) low risk development locations on these lands.Sure Energy has also completed the drilling and completion of three horizontal wellbores in the Alida formation at Queensdale in Southeast Saskatchewan. Facilities are currently being constructed and the Company anticipates all three wells will come on production on October 1, 2011.The Company is currently working on its 10-12-64-10W5M Beaverhill Lake horizontal oilwell to evaluate the possibility of running a liner and packer system to perform a multistage acid frac on the well. The 10-12 well was drilled prior to the new generation of horizontal Beaverhill lake wells in the immediate vicinity, which have been frac'd multiple times with high rates of acid. The two wells completed in this manner within a two mile radius of the 10-12 well exhibited 30 day initial production rates of 919 and 724 barrels of oil per day respectively. Sure Energy's 10-12 well was never frac'd.The Company currently produces approximately 1,200 BOE/d, about 43% of which is light oil and liquids.Sure Energy Inc. is a publicly traded oil and gas exploration and development company listed on the Toronto Stock Exchange under the symbol "SHR".AdvisoriesIn this press release the calculation of barrels of oil equivalent (BOE) is calculated at a conversion rate of 6,000 cubic feet (Mcf) of natural gas for one barrel (bbl) of oil based on an energy equivalency conversion method.  BOEs may be misleading particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.Forward-looking InformationCertain statements contained in this release constitute forward-looking information. These statements relate to future events or Sure Energy's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Sure Energy's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, Sure Energy's stated expectations with respect to the commencement of production from its Redwater North horizontal well, South Redwater wells and Queensdale wells, and with respect to the quantity of production from its Redwater North horizontal well contain forward looking information. Sure Energy's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. Sure disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.For further information: For further information, please visit our website at www.sureenergyinc.com or contact:             Mr. Jeff Boyce, Chairman and CEO Mr. Chris Baker, President and COO Mr. Lance Wirth, Vice President, Finance and CFO Phone: (403) 410-3100 Fax: (403) 410-3111 Email: info@sureenergyinc.com