Crocotta and Upper Lake Enter Agree to $3.2 Million Land Deal

Upper Lake Oil and Gas advises that it has exercised rights available to it under an agreement with Crocotta Energy Inc. to acquire certain oil and gas assets in central Alberta and northeast British Columbia for $3.2 million in cash, before closing adjustments. The assets include one (16.67% net) producing well at Tupper in northeast British Columbia, five (3.2 net) cased and tested wells awaiting tie-in in Alberta, and varying working interests in 16,000 acres of land in Alberta and British Columbia, including a one-third working interest in the Tupper area. The Tupper lands are in the vicinity of a developing Montney resource play. Upper Lake expects to finance the acquisition through its existing credit facilities. Closing of the acquisition is expected to occur by the end of February 2008, subject to the satisfaction of certain customary conditions.