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OMDA Oil and Gas, Inc. Executes Agreement to Participate in 46,000 Acre, Shallow Oil & Gas Play; Drilling Operations Have Commenced on First Six Wells
Jun 7, 2005 8:47:00 AM
Copyright Business Wire 2005
HOUSTON--(BUSINESS WIRE)--June 7, 2005--

OMDA Oil and Gas, Inc. (OMOG), an oil and gas production company (OTC.PK:OMOG), through its Chairman, Adam Barnett, announced today that OMDA has entered into a long term development Oil & Gas play with Young Oil Corp of Knob Lick, KY. The 46,000 acres that Young has under lease are located in North Central Tennessee in Overton, Pickett, Fentress, Morgan, Scott and Clay counties. OMDA, through its OMDA Oil & Gas, Inc. (Texas) subsidiary has purchased a 20% Gross (15% net) working interest in the first six wells under the agreement and has a "First right of refusal" to participate in both Oil & Gas wells to be drilled on the balance of the 46,000. While covering multiple zones, virtually all the production in this area comes from zones shallower than 2,000 ft.

As mentioned above, drilling operations have already commenced. All six wells are expected to be drilled over the next 30 days testing multiple zones to depths up to 2,000 ft , with successful wells to be completed shortly thereafter. OMDA will provide updates either by press releases, or on the company website at the this web address: http://www.omogoil.com/projects.html. Also at this location, the Company has posted additional information on this play.

Adam Barnett, Chairman stated. "I could not be more excited about the long term relationship just inked between your Company and Young Oil. The potential wells to be drilled over the 46,000 acres numbers in the several thousands. Young owns its own rigs and crews so rig delays should be uncommon. We look forward to a long and lucrative relationship for both companies. Barnett went on to say, "This is now the fourth new deal your company has entered into in the last seven months. And third in the past two months. I want our shareholders to understand that your company, while exuberant over the prospects of winning a major award in our Lawsuit against old management, has no intentions of just sitting back and waiting for that outcome. I stated several months ago that it was our goal to build a significant presence as an Oil & Gas producer. Hopefully bringing on projects as we have these last few months, along with expected drilling successes, will begin to resonate in the investment community."

Chris Jeffries of Young Oil said, "We here at Young Oil Corporation are very excited about the newly forged relationship between OMDA and Young Oil Corp. This area of the Appalachian Basin is proving to be one of the final great frontiers of domestic oil and gas production. We are fortunate to have development partners such as Mr. Barnett and OMDA. We look forward to a long and profitable relationship for all."

About Young Oil Corp.

Privately owned Young Oil Corp. is the leading producer and most successful drilling operator in the Appalachian Basin, it is also the largest producer of crude oil in Tennessee by almost twice over the next largest producer. Anthony Young, CEO has been honored as Tennessee Oil Man of the Year, and Mike Branstetter, of Young Oil Corp has recently been elected to the Board of Directors of the Tennessee Oil & Gas Association (TOGA). Along with hundreds of other success, last September, Young brought in one of the largest wells ever in Tennessee. The Lucy Newberry #11, located seven miles NE of Livingston TN, almost had a blow out. Initially Young Oil let it flow at 700 barrels per day choked back through the "blow out preventor" and then through three lines, open flowed at 72 barrels per hour, or approximately 1,728 barrels per day from the Trenton formation. The well was choked back to 200 BOD and from September through December TOGA reports for last year show cumulative production for this well at just under 24,000 barrels. While this well is certainly an anomaly, 80-100 barrel a day oil wells are not uncommon and average wells of 20-30 barrels of oil and gas wells of 70-90mcf per day could be expected. Young's overall success ratio in these fields run about 80%.

About OMDA Oil and Gas, Inc.

OMDA Oil and Gas, Inc and its wholly owned subsidiaries, OMDA Oil & Gas Management, Inc , Texas OMDA Drilling & Operating, Inc and OMDA Oil & Gas, Inc. (Texas) 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 and is currently partnered up with Young Oil Corp, the largest Oil and Gas producer in Tennessee on 46,000 acres in North Central Tennessee, with an initial 20% interest in a six well program and a first right of refusal on any other prospects on the Young leases.

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.