Baseline Oil & Gas Production Expected to Double in 2008

In the fourth quarter of 2007, Baseline Oil & Gas' average net production declined to 7.5 mmcfed in October, partly due to the short term shut-in of gas sales in the Blessing field (related to third party pipeline operations). In addition, several wells developed mechanical problems in the Blessing field, resulting in lower production. Currently, with a group of wells having been successfully drilled or worked over, production has increased to 9 mmcfed (net) as of February 1, 2008. With approximately $15 million of cash on hand and an undrawn bank line, the company has ample capital to execute its 2008 development program. Management expects to double production by year-end 2008.