SOURCE: Atlas Oil and Gas, Inc.

November 25, 2008 10:00 ET

Atlas Oil and Gas Announces Results of Third Well in Pawnee County, OK

WINSTON-SALEM, NC--(Marketwire - November 25, 2008) - Atlas Oil and Gas, Inc. (OTCBB: ATOG) announced the results today from its third well in its 8 well project located near the Arkansas River in Pawnee County, Oklahoma. The first well that was put into production had an initial rate of about 20 barrels of oil per day (BOPD) from a shallow zone at 1550'. The second well went on pump and is on its way to returning to its initial rate of about 40-50 BOPD.

Recently, the third well drilled was put back into production after being down for over a week for servicing. The well had initial recovery rates of between 3 and 4 barrels of oil per hour when it was first swabbed. After the acid treatment, the well was put on pump to recover the water from the acid treatment. Due to not having a large enough pump on the motor, the well has struggled to get "ahead of the water," a situation where water from the stimulation treatment pushes the oil up above the perforations so that mostly water comes into the tubing and up the well bore.

The gas in this well that is used to run the gas driven motor is also wet and so the motor has been on and off as it periodically cannot run off of the gas. This makes it difficult to get a steady, consistent fluid recovery drive. Nevertheless, in one 24-hour period, this well did put over 24 barrels of oil into the tanks despite still recovering oil from the stimulation treatment.

The operator for the project believes the production rate for all three of these wells will continue to increase once electricity is run to the lease and larger, more powerful electric motors are installed. These larger motors will enable the wells to generate a larger stroke and thereby lift more oil out from each of the wells.

"Like the third well drilled that went on pump a couple of days ago, this well has all of the signs of being a very good producer," said Dan Motsinger, President of Atlas Oil and Gas. "Once electric is run on this lease, we will be able to put everything on a normal production schedule with more standard sized motors for the level of fluid recovery we need. Nevertheless, again we have a well with several zones that can be produced and an initial recovery rate in the 2-3 barrels of oil range. We are still confident that we can get back to that initial rate, so we are quite pleased with results thus far."

This well was drilled to a depth of 2907' and had commercially viable amounts of oil and gas in about 4 different formations. The well was first perforated and acidized in the Bartlesville from 2500' to 2516' and after being perforated flowed naturally about 3-4 barrels of oil per hour.

About Atlas Oil & Gas, Inc.

Atlas Oil & Gas, Inc. is focused on developing shallow natural gas and oil wells in Northeastern Oklahoma. Atlas is an independent energy development firm primarily engaged in the exploration, development, and production of oil and natural gas. The company relies upon its industry partners, well operators, third party geologists, industry consultants, petroleum engineers, and financial analysts whose combined industry experience is essential to the success of each project. With the growing demand on oil and natural gas in the United States, Atlas will focus its resources on accomplishing its goal of successful well creation and distribution.

Cautionary note: This report contains forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to U.S. investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Contact Information