Bronco Energy Ltd. provides an update on production and drilling operations.

With the inlet tanks repaired in June, Bronco was able to refocus its efforts on process controls and commissioning of the treater in July. Production was limited for July as instrumentation settings, level controls and process enhancements were performed to calibrate the treater. August has seen a significant improvement in facility and well performance with average production rates of approximately 800 bopd on a calendar day basis and approximately 1,600 bopd when factoring in downtime for the period August 1 to 10.

Pipelined sales volumes to the Pelican Lake lateral from August 1 to August 10 exceeded a cumulative 8,000 barrels, including a blend of approximately 10% condensate. This volume includes four days of little or no sales volume primarily due to additional commissioning calibration activities, which required the wells to be turned down or shut in for approximately 50% of the time. The largest single day delivery of sales oil exceeded 1,900 barrels. On August 12, the treater processed intermittent clean oil rates of up to 2,200 bopd with a 24 hour average rate of 1,480 bopd.

To date, the high emulsion and water volumes have limited the number of producing wells to 19 of the 48 that are ready for production. Bronco will continue to monitor and improve facility performance to enhance the operational effectiveness of the Battery and is expecting to see continued increases in run time, producing well count, oil production and sales volumes in the near term. Bronco has secured a second treating vessel and expects it to be operational in Q4 2008 to assist in the treating of all of Bronco's existing and future wells on the East Block of the Bigstone Reserve.

The individual wells continue to trend with performance as expected upon achieving near optimized annulus fluid levels. The best six producing wells have an optimized average oil cut exceeding 85%, with the best well having a most recent test production rate in excess of 200 bopd with an 84% oil cut. Six additional wells are close to transitioning to high oil cuts, at which time additional wells will be brought on stream. Contingent on existing unoptimized wells being pumped off and transitioning to high oil, the plan is turn on 2-3 additional wells per week to increase well count near-term.

Bronco's recent guidance targets of 3,000-5000 bopd by the end of Q3 2008 assumed an optimized production level of 100 bopd from 30 to 50 producing wells, and that the battery will perform as expected and reach its optimal commissioned operational capacity. Bronco reaffirms its single well guidance. Total field guidance is expected to be achieved once 30 wells are pumped off with optimized oil cuts. The timing of achieving Q3 2008 guidance will be a function of the rate of increase of well and facility optimization, both of which continue to improve.

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