CALGARY, ALBERTA--(Marketwire - April 20, 2012) -

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

Suroco Energy Inc. (TSX VENTURE:SRN) (the "Corporation") is pleased to announce that it has filed its Audited Consolidated Financial Statements and the related Management's Discussion and Analysis ("MD&A") for the year-ended December 31, 2011 and its Annual Information Form for the year ended December 31, 2011 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 ].

Alastair Hill, the Corporation's President and CEO commented, "During 2011 we made significant progress in defining the potential of the Cohembi oilfield which will dominate our drilling activity and expected reserves and production growth in 2012. The two successful appraisal wells we drilled and the completion of a field development study resulted in the recognition of significant undeveloped waterflood reserve potential and paved the way for a continuous appraisal program, which commenced recently with the drilling of the successful Cohembi-5 well.

Operationally, average production for the year was up by 15% to 877 barrels per day net after royalty which, combined with attractive pricing and operating netbacks exceeding $60 per barrel, resulted in revenue being up some 65% and funds flow from operations up 74%, equivalent to $0.15 per share. Total proved and probable reserves increased by 14% after accounting for 2011 production. Finally we exited the year with a working capital surplus of approximately $9 million which, when combined with our forecast after-tax cashflow of $21 million and the potential inflow of funds from the exercise of warrants from our 2009 financing, will internally fund our 2012 capital program."

• Increased average production (net after royalty) to 877 barrels of oil per day, an increase of 15% from the prior year and increased average fourth quarter production (net after royalty) to 838 bopd, an increase of 14% over the prior year.

• Operating netbacks were $61.09 for the year and $65.05 for the fourth quarter of 2011.

• Drilled two successful appraisal wells in the Cohembi oilfield and one successful development well in the Pinuna oilfield in the Suroriente Block, Putumayo Basin, where the Corporation holds a 15.8% interest. A further well, Pinuna 4, was drilled and completed and is under observation and testing in an attempt to remedy high water cut production.

• Drilled the Poyato-1 exploration well in the San Antonio Block, Llanos Basin, where the Corporation holds a 28% economic interest. The well tested predominantly water and oil at non-commercial rates and was subsequently abandoned. The gross drilling cost was approximately $7 million, however the Corporation's net drilling costs were limited to $0.68 million due to a fixed cost turnkey agreement with the operator.

• Drilled the Charapa-1 exploration well in the Alea 1848A Block, Putumayo Basin, where the Corporation holds a 50% interest. The well tested predominantly water and oil at non-commercial rates and was subsequently abandoned.

• Acquired an additional 25% interest in the Alea 1947-C Block in the Putumayo Basin. The Corporation currently holds through its subsidiaries a 24.5% working interest in this block and has acquired an additional 25% economic interest in this block. The additional interest was acquired through the payment of 25% of the back-costs in the block and a commitment to carry an additional 8% interest in the drilling of the first exploration well. Upon approval by the Agencia Nacional de Hidrocarburos of Colombia, the 25% economic interest in this block will convert into a full 25% undivided working interest in the block, resulting in the Corporation holding a 49.5% working interest in the Alea 1947C Block.

• Exited the quarter with approximately 10 days of unsold oil in inventory to be sold in the first quarter of 2012. Substantially all of this production was sold by January 31, 2012.

Drilling and Reserve Highlights

The Corporation has received a report from its independent qualified reserves evaluators, GLJ Petroleum Consultant ("GLJ"), effective as at December 31, 2011, evaluating the oil reserves of the Corporation's properties in Colombia in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and the COGE (Canadian Oil and Gas Evaluation) Handbook. All reserve estimates and net present values stated herein are derived from GLJ's evaluation.

The Corporation completed a successful 2011 drilling campaign delivering significant reserve additions, highlighted by the following:

• Total proved reserves of approximately 0.9 million barrels of oil (net after royalty), with a net present value (before tax and discounted at 10%) of approximately US$43.2 million.
• Total proved plus probable reserves of approximately 1.8 million barrels of oil (net after royalty), with a net present value (before tax and discounted at 10%) of approximately US$72.5 million.
• Total proved, probable and possible reserves of approximately 2.7 million barrels of oil (net after royalty), with a net present value (before tax and discounted at 10%) of US$118.6 million.
• Positive revisions of 64% as compared to 2010 year-end company gross proved producing reserves, resulting in a net increase of 12% after accounting for 2011 production.
• Positive revisions of 20% as compared to 2010 year-end company gross total proved reserves, resulting in a net decrease of 12% after accounting for 2011 production.
• Positive revisions of 35% as compared to 2010 year-end company gross total proved plus probable reserves, resulting in a net increase of 14% after accounting for 2011 production.
• Positive revisions of 12% as compared to 2010 year-end company total gross proved plus probable plus possible reserves, which essentially offset 2011 production to result in no significant net change for this category.
• Recognition by GLJ of significant undeveloped waterflood reserve potential in the Cohembi area in both the probable and possible reserves categories.

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 Colombia. The Corporation's common shares trade on the TSX Venture Exchange under the symbol "SRN".

Reserves Information

"Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

"Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.

"Possible" reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves.

FORWARD LOOKING STATEMENTS

Certain statements included in this press release constitute forward-looking statements under applicable securities legislation. These statements relate to future events or future performance of the Corporation. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. Forward-looking statements or information in this press release include, but are not limited to, the characteristics of the Corporation's oil and natural gas properties,reserve quantities and the discounted present value of future net cash flows from such reserves, net revenue,capital expenditures, exploration plans and development plans and receipt of approvals from the Agencia Nacional de Hidrocarburos of Colombia. In addition, this press release may contain forward-looking statements attributed to third party industry sources. Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; changes in environmental and other regulations; risks associated with oil and gas operations and future exploration activities; and other factors, many of which are beyond the control of the Corporation. You can find an additional discussion of those assumptions, risks and uncertainties in the Corporation's Canadian securities filings.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Corporation disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Corporation undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above. New factors emerge from time to time, and it is not possible for management of the Corporation to predict all of these factors and to assess in advance the impact of each such factor on the Corporation's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement or information. The forward-looking statements contained herein are expressly qualified by this cautionary statement. Moreover, neither the Corporation nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements.

Statements relating to "reserves" are deemed to be forward-looking statements or information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitable in the future. There are numerous uncertainties inherent in estimating quantities of proved reserves, including many factors beyond the control of the Corporation. The reserve data included herein represents estimates only. In general, estimates of economically recoverable oil and natural gas reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary considerably from actual results. All such estimates are to some degree speculative and classifications of reserves are only attempts to define the degree of speculation involved. For those reasons, estimates of the economically recoverable oil and natural gas reserves attributable to any particular group of properties and classification of such reserves based on risk of recovery and estimates of future net revenues expected therefrom, prepared by different engineers or by the same engineers at different times, may vary substantially. The actual production, revenues, taxes and development and operating expenditures of the Corporation with respect to these reserves will vary from such estimates, and such variances could be material.

Estimates with respect to proved reserves that may be developed and produced in the future are often based upon volumetric calculations and upon analogy to similar types of reserves rather than actual production history. Estimates based on these methods are generally less reliable than those based on actual production history. Subsequent evaluation of the same reserves based upon production history will result in variations, which may be substantial, in the estimated reserves.

Consistent with the securities disclosure legislation and policies of Canada, the Corporation has used forecast prices and costs in calculating reserve quantities included herein. Actual future net cash flows also will be affected by other factors such as actual production levels, supply and demand for oil and natural gas, curtailments or increases in consumption by oil and natural gas purchasers, changes in governmental regulation or taxation and the impact of inflation on costs.

The estimated future net revenue referenced above does not necessarily represent the fair market value of the Corporation's reserves. There is no assurance that the forecast price and cost assumptions contained in the evaluation by GLJ referenced above will be attained and variances could be material. Other assumptions and qualifications relating to costs and other matters are included in the Corporation's Annual Information Form for the year ended December 31, 2011. The recovery and reserves estimates on the Corporation's properties described herein are estimates only. The actual reserves on the Corporation's properties may be greater or less than those calculated.

Contributing Sources

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