PetroSun and Energy Southwest Agree to Drill and Develop Holbrook Basin Prospects in Arizona

  PetroSun, Inc. (PINKSHEETS: PSUD) announced
today that the Company has entered into an agreement with Energy Southwest,
LLC to drill and develop the Holbrook Basin leasehold in Arizona. The terms
of the agreement include an Energy Southwest drilling and development
obligation, if warranted, up to twenty-nine million dollars.

The initial test wells will be drilled on the Manuel Seep and Meteor Crater prospects. The Manuel Seep well will be drilled to basement to test all prospective oil, natural gas and helium zones. The Meteor Crater well will be a direct offset to the Holbrook Energy 26-1 that discovered an oil bearing sand in the Permian Supai Fort Apache from 1,632 to 1,644 feet. The Meteor Crater offset will test the Fort Apache for potential commercial crude oil production.

"The agreement with Energy Southwest allows PetroSun to test the Holbrook Basin structures for commercial oil, natural gas and/or helium reserves and will provide the Company with the means to retire our outstanding debt," stated Gordon LeBlanc, Jr., PetroSun CEO.

About PetroSun

PetroSun, Inc. is a diversified energy company with technology and operations in oil, natural gas and helium exploration, development and production, commercialization of algae-to-biofuels, microbial enhanced oil recovery and oilfield pipe and supply.

For more information about PetroSun visit the company's website at www.petrosuninc.com.

Except historical matters contained herein, matters discussed in this news release are forward-looking statements and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties, which may affect the Company's business and prospects and cause actual results to differ materially from these forward-looking statements.

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