Monarch Partners with Daybreak Oil and Gas on California Project

  
    
  
  
    
      Monarch Gulf Exploration, Inc. (Pink Sheets:MGFX) announced today it has 
      entered into an agreement with Daybreak Oil and Gas, Inc. to jointly 
      develop Daybreak’s 50% interest in their 
      Eastslopes Project, located in the San Joaquin Valley of California.
    
    
      Monarch and Daybreak along with their other industry partners plan to 
      conduct a 3-D seismic survey this year. The $1,750,000 survey will 
      encompass approximately 15,000 acres. A nine well drilling program is 
      planned to begin in the first quarter of 2007.
    
    
      The San Joaquin Basin is a prolific oil producing area with a long 
      history of production. In the vicinity of the East Slopes Project, two 
      prominent fields produced 435.5 MMB (million barrels) and 20.6 MMB of 
      oil respectively from the Pyramid Hills and Vedder Sands. Historic 
      production has been from shallow depths of 1,000 to 3,000 feet and the 
      oil is of low to medium gravity (13 to 22 API).
    
    
      Chet Pohle, Consulting Geochemist for Monarch states that this project 
      offers the opportunity for the discovery of multiple pools of oil using 
      modern 3-D seismic data, which lowers the exploration risk.
    
    
      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 
      in this statement may include terminology such as “believe” 
      “expect” “should” 
      “approximately” “likely” 
      or “anticipates” 
      or the negative thereof or given that the future results covered by such 
      forward looking statements will be achieved. There is a number of known 
      and unknown risks. Uncertainties and other factors may cause the actual 
      results to vary significantly with the above forward looking statements.
    
  
Monarch Gulf Exploration, Inc. (Pink Sheets:MGFX) announced today
it has entered into an agreement with Daybreak Oil and Gas, Inc. to
jointly develop Daybreak's 50% interest in their Eastslopes Project,
located in the San Joaquin Valley of California.

   Monarch and Daybreak along with their other industry partners plan
to conduct a 3-D seismic survey this year. The $1,750,000 survey will
encompass approximately 15,000 acres. A nine well drilling program is
planned to begin in the first quarter of 2007.

   The San Joaquin Basin is a prolific oil producing area with a long
history of production. In the vicinity of the East Slopes Project, two
prominent fields produced 435.5 MMB (million barrels) and 20.6 MMB of
oil respectively from the Pyramid Hills and Vedder Sands. Historic
production has been from shallow depths of 1,000 to 3,000 feet and the
oil is of low to medium gravity (13 to 22 API).

   Chet Pohle, Consulting Geochemist for Monarch states that this
project offers the opportunity for the discovery of multiple pools of
oil using modern 3-D seismic data, which lowers the exploration risk.

   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 in this statement
may include terminology such as "believe" "expect" "should"
"approximately" "likely" or "anticipates" or the negative thereof or
given that the future results covered by such forward looking
statements will be achieved. There is a number of known and unknown
risks. Uncertainties and other factors may cause the actual results to
vary significantly with the above forward looking statements.