SOURCE: Bonanza Oil and Gas, Inc.

January 29, 2010 16:05 ET

Bonanza Oil & Gas Announces Update

HOUSTON, TX--(Marketwire - January 29, 2010) - Bonanza Oil and Gas, Inc. a Nevada Corporation (OTCBB: BGOI) (the "Company"), an independent oil and gas company, is pleased to provide an update on the Company. The Company's senior debt restructure has been completed, along with the forward split and the increase of its authorized shares.

The Company is also pleased to announce that the production level of the Jackson Well in the Apclark Field, operated by Westerly Exploration, Inc., appears to be increasing, after the re-fracturing stimulation of that well. The Company is also in hopes to rejuvenate its development of the existing PUDS, and thus increase cash flow and value.

The Company is currently evaluating other asset properties that may be purchased and/or merged into the Company. As of the date hereof we have not entered any agreement or other arrangements with respect to these properties and, as a result, we cannot provide any guarantee that we will successfully close any such acquisition.

Bill Wiseman, President/CEO, said, "The Company is very pleased the restructure of the senior debt is completed, which allows the Company to clean up its balance sheet and provide flexibility for the Company to commence implementing our proposed original business plan and strategy, by developing PUDS, and adding proven properties to the Company, and, in turn, hopefully adding shareholder value."

About Bonanza Oil & Gas, Inc.

Based in Houston, TX, Bonanza Oil and Gas, Inc. holds assets ranging from current producing properties, wholly owned prospects, to developing working interests in Proven Undeveloped (PUDS) properties.

Safe Harbor Statement

Some of the statements made by the Company in this press release are forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. The Company believes that its primary risk factors include, but are not limited to: production variances from expectations, volatility of product prices, inability to raise sufficient capital to fund its operations, environmental risks, competition, government regulation, and the ability of the Company to execute its business strategy, among others. Additional information concerning these and other important factors can be found within the Company's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors.

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