Maverick Drills, Tests Initial Fayetteville Wells

Maverick Oil and Gas, Inc.

Maverick Oil and Gas, Inc. on Friday reported the following operational update:

Fayetteville Shale Project

The company has now drilled and tested the first two wells in its extensive company operated Fayetteville Shale project in Arkansas. Both of the first two wells encountered three prospective shale intervals designated the Upper Fayetteville, Lower Fayetteville (Moorefield), and Chattanooga Shales. All three intervals were characterized as thermally mature and with Total Organic Content in the range of 2.5% to 4.6%. Additionally, as expected, the shales were significantly thicker than their equivalents in the western part of the play in Cleburne and surrounding counties. The two wells have proven a significant easterly extension of the known presence of potentially productive shales in the emerging Fayetteville Shale play.

Due to the need to clarify the extent of the shale intervals, a minimum of six exploratory tests are planned. The first of these, the Morris #1-3H well, located some 7 miles west of the two initial test wells, is currently drilling.

Despite the presence of the target formation, Maverick was unable to produce either well after its initial completion attempt, which consisted of fracture stimulating the well utilizing a hybrid slick water foam process, with the Williamson Brothers #1-36H having its lateral placed in the Lower Fayetteville (Moorefield) interval and the Byers #1-3H in the Upper Fayetteville interval. On test, the Williamson Brothers #1-36H produced significant quantities of fresh water (possibly indicative of a mechanical problem) and the Byers #1-3H failed to produce from its original completion interval. Plans for further evaluation and/or remedial activity on these wells are currently being developed.

“The company has made significant strides in beginning the evaluation of its Fayetteville Shale Project,” said V. Ray Harlow, Maverick’s CEO. “We continue to believe there are commercial gas reserves within the play, and we will continue to explore in order to define the limits of the play. The engineering challenges which this play poses are not insignificant, but we believe they are not insurmountable.”

Barnett Shale Project

The company has concluded the drilling of its Flowers #1 development well and production casing has been run and cemented. The well is currently being prepared for fracture stimulation, which is scheduled for July 31 through August 3, 2006. First production from this well is likely to be during early September 2006. In addition, the first of a planned three development wells in the non-operated portion of the project has been drilled and fracture stimulation is scheduled to commence on July 25, 2006, with first production anticipated during early September 2006. A third non-operated development well is currently being drilled, and that well will be followed by the last well in the 2006 drilling campaign. By the end of October, all the new wells in this drilling initiative should be on production.

“We continue to develop the Barnett Shale as this area has a proven record of delivering reserves over several decades,” said Harlow. “We expect to achieve commercial production in this project and remain optimistic we can further exploit our leasehold through additional drilling operations.”

Whitewater Project

Preparation for initial production from the wells previously drilled in the project, as well as plans for a limited drilling program for the remainder of 2006, is nearing completion. It is anticipated that the first sustainable production from this project could occur late in the third quarter of this year followed by an accelerated development campaign in the fourth quarter 2006 and into 2007.

“The resumption of operations on our now non-operated Whitewater Project in Mesa County, Colo., is in line with our previously announced plans to initiate first production from this exciting play prior to year-end 2006,” noted Harlow. “It is likely that the company and its partners will execute an aggressive program to place the previously drilled wells on production as quickly as possible and to drill a significant number of new wells in the coming months.”

Maverick Oil and Gas is an early stage independent energy company engaged in oil and gas exploration, exploitation, development, and production. The company currently participates in these activities through the interests it holds in oil and gas exploration and development projects in Arkansas, Texas, and Colorado.