Petrol to Commence Drilling on Petrol-Neodesha Project

Petrol Oil and Gas has filed fifteen new drilling permits and commenced related activities in preparation to begin a drilling program in the first quarter of 2005 on its recently acquired Petrol-Neodesha Project. Based upon current gas prices and production levels the property is anticipated to generate gross revenues of approximately $9.6 million for Petrol in 2005, which would equate to $0.15 per share operating cash flow solely from this property. Petrol has a 100% working interest in the property.

Petrol-Neodesha is in a mature and highly prolific Coal Bed Methane (CBM) gas producing area located in Wilson and Neosho counties, Kansas and currently produces about 3,000 Mcf per day of gas, based upon production from the 71 wells. Petrol acquired the property last month and plans to expand low-risk drilling activities next year to expand production in the area. Petrol-Neodesha has room for an additional 100 drillable locations.

"We are working diligently to expand production in this highly promising area," said Paul Branagan, Petrol's President and Chief Executive Officer. "Since completing the acquisition, further due diligence has indicated that the property supports a large-scale drilling program. We have begun to mobilize equipment and resources so that we can expand production beyond what currently exists today."