Monarch Enters into Drilling Agreement

  
    
  
  
    
      Monarch Gulf Exploration, Inc., (Pink Sheets:MGFX) a Washington 
      Corporation, today announced it has entered into an agreement to 
      participate in the drilling of a test well in the North Colgrade 
      Prospect located in Winn Parish, Louisiana. Monarch will have a 19% 
      working interest in this project. Total drilling costs are estimated in 
      to $374,000.
    
    
      The principal targets of the well will be the First Wilcox oil sands and 
      surrounding gas sands. The total depth for the test well is planned for 
      2,990 feet. The North Colgrade Prospect is approximately 1,500 acres. 
      The first well is anticipated to be drilled by the end of this year.
    
    
      The Colgrade field, three miles to the south, has produced approximately 
      22 MBbls (million barrels) of oil. The Joyce field, four miles to the 
      northwest of the North Colgrade prospect, has produced 1.9 MBbls of oil 
      from the First Wilcox Sand and 3.5 Bcf (billion cubic feet) of gas from 
      multiple Wilcox gas sands. Mapping by Frank Davis Exploration, Inc., 
      indicates many of the Lower Wilcox sands have untested oil and gas 
      potential.
    
    
      In other news today, Monarch announced that Williams & Webster, PS of 
      Spokane, Washington, has completed the company audit.
    
    
      R.E. “Bob” 
      Jorgensen, Monarch’s CEO states that 
      completing these two projects are important steps in achieving the 
      company’s objective of maturing into an 
      aggressive junior oil and gas exploration and production company.
    
    
      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., (Pink Sheets:MGFX) a Washington
Corporation, today announced it has entered into an agreement to
participate in the drilling of a test well in the North Colgrade
Prospect located in Winn Parish, Louisiana. Monarch will have a 19%
working interest in this project. Total drilling costs are estimated
in to $374,000.

   The principal targets of the well will be the First Wilcox oil
sands and surrounding gas sands. The total depth for the test well is
planned for 2,990 feet. The North Colgrade Prospect is approximately
1,500 acres. The first well is anticipated to be drilled by the end of
this year.

   The Colgrade field, three miles to the south, has produced
approximately 22 MBbls (million barrels) of oil. The Joyce field, four
miles to the northwest of the North Colgrade prospect, has produced
1.9 MBbls of oil from the First Wilcox Sand and 3.5 Bcf (billion cubic
feet) of gas from multiple Wilcox gas sands. Mapping by Frank Davis
Exploration, Inc., indicates many of the Lower Wilcox sands have
untested oil and gas potential.

   In other news today, Monarch announced that Williams & Webster, PS
of Spokane, Washington, has completed the company audit.

   R.E. "Bob" Jorgensen, Monarch's CEO states that completing these
two projects are important steps in achieving the company's objective
of maturing into an aggressive junior oil and gas exploration and
production company.

   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.