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OMDA Oil and Gas, Inc. and Subsidiaries File Amended Pleadings in Multi-Million Dollar Fraud Lawsuit against Former Management; Scope and Damages Increase Dramatically
Jun 2, 2005 8:30:00 AM
Copyright Business Wire 2005
HOUSTON--(BUSINESS WIRE)--June 2, 2005--

OMDA Oil and Gas, Inc. (OMOG), an oil and gas production company (OTC.PK:OMOG), through its Chairman, Adam Barnett, announced today that it has approved and had filed an amended pleading to the initial suit filed on March 29th 2005, seeking Declaratory Judgment in The District Court Of Harris County, Texas, 215 Judicial District. Cause No. 2005-23020, captioned Omda Oil And Gas, Inc.; Omda Oil And Gas Management, Inc. and Omda Oil And Gas Services, Inc. Plaintiffs Vs. Joe Lanza, Morgan Wilbur, III, And Richard I Michael, Trustee Of "007 Trust", Monte Anderson, Tom Neely And David Taylor, Defendants.

During the ensuing two months, though depositions have not yet begun, Plaintiffs have obtained evidence proving fraud, conversion and misappropriation of their assets and determined that it was prudent to immediately amend pleadings. PLAINTIFFS' FIRST AMENDED COMPLAINT FOR BREACH OF FIDUCIARY DUTY, CANCELLATION OF INSTRUMENTS, CONSPIRACY, CONVERSION, EMBEZZLEMENT, FRAUD, MISAPPLICATION OF FUNDS, MISREPRESENTATION, NEGLIGENCE, NEGLIGENT MISREPRESENTATION, SECURITIES FRAUD, THEFT, THEFT OF CORPORATE OPPORTUNITY, TORTIOUS INTERFERENCE WITH CONTRACT, UNJUST ENRICHMENT, CLAIM TO INTERPLEADER, AND DECLARATORY JUDGMENT PLAINTIFFS' FIRST AMENDED COMPLAINT FOR BREACH OF FIDUCIARY DUTY, CANCELLATION OF INSTRUMENTS, CONSPIRACY, CONVERSION, EMBEZZLEMENT, FRAUD, MISAPPLICATION OF FUNDS, MISREPRESENTATION, NEGLIGENCE, NEGLIGENT MISREPRESENTATION, SECURITIES FRAUD, THEFT, TORTIOUS INTERFERENCE WITH CONTRACT, UNJUST ENRICHMENT, CLAIM TO INTERPLEADER, AND DECLARATORY JUDGMENT was filed on Friday, May 27, 2005.

The Company is seeking return of assets plus actual damages in the amount of at least Thirty Six Million Five Hundred Thirty Thousand Two Hundred Sixty One Dollars and 10/100 cents ($36,530,261.10)) and Exemplary damages and Declaratory Judgment that Omda Oil and Gas, Inc., is the sole shareholder of Omda Oil And Gas Management, Inc., Omda Oil And Gas Services, Inc., and SHWJ Oil And Gas Co., Inc., each a Texas Corporation; and, Declaratory Judgment that Plaintiff, Omda Oil and Gas, Inc., either directly or by and through its wholly owned subsidiary, Omda Oil And Gas Management, Inc., is the owner of those certain 314 leases set forth on the Consolidated Financial Statement submitted to Barnett on or about July 9, 2003.

Complete copies of both the initial filing and amended pleadings can be found on the company website located at. http://www.omogoil.com/legal_updates.html

Adam Barnett stated, "As many know, I took control of OMDA some 20 months ago on an unfriendly basis by buying over 50% of the then outstanding shares. For these many months I have been trying to get all the records of OMDA from prior management. Most of my requests were met with worthless promises of 'they are being assembled" or some such response or excuse why they could not be delivered. In the meantime, particularly in earlier months, I kept receiving and paying bills that numbered into the hundreds of thousands of dollars that prior management mandated need be paid to maintain the vast amount of properties that prior management had disclosed to shareholders as being owned by OMDA. Late last year it became apparent that while these properties were owned and controlled by OMDA when prior management was at the helm, many of these properties may have been illegally converted for prior managements personal benefit."

Barnett went on to say, "Once it started to become apparent to me that these wrongful and probably illegal activities may have occurred, I engaged an attorney with proven investigative experience to confirm or belay my suspicions. As the investigation proceeded, as can be seen by the differences between our original pleadings and the recent amended pleading, many layers of clear corruption started to appear. The settlement which we received last week over the Concord Dome property is a direct result of the information that he obtained."

Barnett concluded by saying, "While current Management has and will continue to build on our own new asset and opportunity base, we are also prepared to prosecute past injustices to all OMDA shareholders to the fullest extent of the law, and return to the shareholders what is rightfully theirs."

About OMDA Oil and Gas, Inc.

OMDA Oil and Gas, Inc and it's wholly owned subsidiary's, OMDA Oil & Gas Management, Inc and Texas OMDA Drilling & Operating, Inc are in the business of oil and gas production and lease acquisition. Currently the Company owns average participation interests approaching 47%, in 355 producing and non-producing oil and gas wells in Louisiana and Texas, as well as 100% gross interest in an undeveloped 1,116 acre, horizontal play in the Panola Field, Panola County, Texas. Current projects include a 15% working interest in an 800+ acre play in Shelby County, TX and a Carried back-in working interest of at least 7.5% up to 37.5% in a 12 well workover play in the Concorde Dome Field in Andersen County, Tx.

This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

Source: OMDA Oil and Gas, Inc.