SOURCE: Bonanza Oil and Gas, Inc.

February 03, 2010 09:45 ET

Bonanza Oil & Gas, Inc. Discusses Proposed Future Oil & Gas Developments

HOUSTON, TX--(Marketwire - February 3, 2010) - Bonanza Oil & Gas, Inc., a Nevada Corporation (OTCBB: BGOI) (the "Company") independent oil and gas company, is pleased to report on the oil and gas development for the Company.

The Company is planning to proceed on its business plan to exploit and develop the Proven Undeveloped (PUDS) reserves the Company has on the Apclark Field property. With the production level of the Jackson Well increasing and the increase in oil and gas pricing, the Company believes that the time is right to develop the PUDS associated with the Apclark Field property, although we cannot guarantee that we will be able to successfully develop such fields.

The Company is also assessing its Damon Mound property, as prices have increased and costs have declined to levels that make drilling a well economical. The Company has leases on the Damon Salt Dome, and has identified development drilling locations.

The evaluation is ongoing for additional producing 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 looking forward to resuming the production of oil and gas, and back to implementing our anticipated initial business plan and strategy, by developing PUDS, and adding proven reserves to the Company, thus 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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