Monarch Agrees to Participate in the Krotz Springs Project

  
    
  
  
    
      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.