Tekoil, Masters Agree to Further Extension of Closing

Tekoil & Gas Corp. said that it and Masters Resources, LLC have agreed to extend the closing date for Tekoil's acquisition of oil and gas properties in Galveston Bay, Texas (the "Masters Acquisition") to on or before April 12, 2007.

Mark Western, Chairman of the Company, stated: "We have continued to work on certain conditions to closing, financing, related due diligence and the completion of title review, as described in our press release of March 7, 2007. Despite the extension date to April 12th, our current target date for closing is April 5, 2007."

Richard Lee, President of Masters Resources, LLC, stated: "We are continuing to assist Tekoil through the final stages of their due diligence and are looking forward to bringing this transaction to a successful conclusion."

Houston-based Tekoil & Gas Corporation is a technology-driven company focused on the development, acquisition, stimulation, rehabilitation and asset improvement of small to medium-sized oil and gas fields.