Monarch Follows North Sea Success With $3 Million Placement

Following its recent participation in the Maria 15/18a-12 discovery well in the
UK North Sea, Monarch Energy Limited (TSX VENTURE:MNL)(FRANKFURT:EIY) (the
"Company") is arranging a non-brokered private placement of up to 30 million
units at CDN$0.10 per unit for gross proceeds of up to CDN$3 million, subject to
regulatory approval. Each unit consists of one common share and one-half of one
non-transferable share purchase warrant. One whole warrant entitles the holder
to acquire one additional common share for two years at a purchase price of
CDN$0.15 provided, however, that should the closing price of the Company's
shares on the TSX Venture Exchange be at least CDN$0.25 per share for 20
consecutive trading days (at any time at or following the expiry of the four
month resale restriction period), the Company may, by notice to the holder
(supplemented by a news release of general dissemination), reduce the remaining
exercise period applicable to the warrants to not less than 30 days from the
date of such notice. Finder's fees will be paid on portions of the private
placement.


The private placement shares, any shares acquired upon exercise of the warrants
and any securities issued in payment of finder's fees will be subject to a
four-month hold period.


The proceeds from this private placement will be used for the Company's share of
the cost of further development of Block 15/18a in the UK North Sea and for
working capital.


Monarch Energy Limited paid 11.11% of the cost of the recent Maria 15/18a-12
discovery well to earn an 8.33% interest in the entire block 15/18a. The Maria
15/18a-12 discovery well encountered a 60 foot hydrocarbon column in the
targeted Paleocene Lower Forties reservoir. The column consists of 45 feet of
oil pay and a 15 foot gas cap. Reservoir sands are described as excellent
quality. A modular formation dynamics testing tool provided samples of both oil
and gas in the Lower Forties. The oil-water contact in the 15/18a-12 well
appears to be the same as the contact established in the 15/18a-8 well drilled
one kilometer to the south-east thereby establishing one continuous pool. The
pool is within the same Paleocene channel trend as the MacCullough and Brenda
fields.


The 145 sq. km. (35,800 acres) Block 15/18a into which the Company has earned
also contains a large Jurassic prospect in addition to two fallow Jurassic
discoveries, one of which tested 6650 barrels of oil per day and 10,000 MCF of
gas per day.


In addition, the 3-D seismic survey in UK North Sea Quad 30 has been completed
and will now be processed and interpreted. Monarch is paying 20% of the cost of
the 3-D seismic survey and 13.33% of the cost of drilling a test well to earn a
10% interest in a 422 square kilometer (approximately 104,000 acre) block
located in Quad 30 in the UK North Sea. Recently acquired seismic indicates the
block contains several Jurassic and Permian plays. A well drilled into one of
the Jurassic plays logged oil before the well was abandoned due to insufficient
zone thickness. 3-D seismic on the block indicates that the Jurassic thickens to
the northwest of that well. Lundin Petroleum AB is the operator of this project.


As part of its continuous active exploration program in the North Sea, Monarch
continues to review other North Sea exploration projects.


ON BEHALF OF THE BOARD

Michael Turko, President and CEO