Monarch update on well 15/18a-12

Monoil (UK) Limited, a wholly owned UK subsidiary of Monarch Energy Limited provides the following update on the 15/18a-12 (Maria) well.

The well reached total depth of 5,865 feet measured depth (MD) on February 17, 2008 with logging operations completed on February 23, 2008. During drilling operations severe hole problems were encountered, and as a result a neutron density log was not acquired. Preliminary interpretation of logs indicates that a 60 foot hydrocarbon column was encountered in the targeted Lower Forties reservoir, of which 45 feet is interpreted as oil pay and 15 feet is interpreted as gas pay. Reservoir sands are described as excellent quality. A modular formation dynamics testing tool (”MDT”) 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 away to the south-east, thereby establishing one continuous pool. The Company will integrate well information into geological and geophysical models to determine future operations and commerciality.

Pursuant to the terms of the 15/18a farmin agreement Monoil was required to pay 11.11% of the cost to drill, log, test, and plug and abandon the well to earn an 8.33% interest in Block 15/18a, earning has now occurred. As per the original drilling program filed with BERR the well is being plugged and abandoned and the rig will be released and transported back to Ivergordon, Scotland.