Consolidated Odyssey Exploration Inc.

Consolidated Odyssey Exploration Inc.
U.S. Oil and Gas Resources Inc.

U.S. Oil and Gas Resources Inc.
August Energy Corp.

August Energy Corp.

February 18, 2005 10:19 ET

Consolidated Odyssey Exploration, Inc. U S Oil & Gas Resources & August Energy Corp Announce the Acquisition of Pelahatchie Field


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CONSOLIDATED ODYSSEY EXPLORATION INC.

TSX VENTURE SYMBOL: ODE

AND U.S. OIL AND GAS RESOURCES INC.

TSX VENTURE SYMBOL: USR

AND AUGUST ENERGY CORP.

PINK SHEETS SYMBOL: AENC

FEBRUARY 18, 2005 - 10:19 ET

Consolidated Odyssey Exploration, Inc. U S Oil & Gas
Resources & August Energy Corp Announce the
Acquisition of Pelahatchie Field

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 18, 2005) -
Consolidated Odyssey Exploration Inc. (TSX VENTURE:ODE); U S Oil and Gas
Resources (TSX VENTURE:USR); and August Energy Corp. (PINK SHEETS:AENC)
(herein together called the "Companies"), are pleased to announce today
that the three companies have entered into agreements subject to TSX
acceptance, to each purchase a 1/3 (one third) working interest, 24% net
revenue interest in the Pelahatchie Field, Rankin County, Mississippi.

Pelahatchie field in Rankin County, located in central Mississippi
approximately 20 miles East of Jackson, Miss., was discovered in 1962
with the completion of a well in the Early Cretaceous Mooringsport
Formation. This discovery led to further drilling and development which
resulted in tests and production from numerous zones in intervals
starting at a shallow 7500 ft Tuscaloosa reservoir to a deep Norphlet
zone at 17,000 ft. The 17,000 Norphlet zone produced at rates exceeding
2000 barrels of oil per day and two million cubic feet of gas per day,
according to production records maintained by Shell Oil Company.

The field was never fully developed. In a publication dated September 1,
1968 and filed with the Department of Energy (report Conf-681095), and
titled "Pelahatchie Field-Mississippi giant", Mr. H. E. Karges,
Certified Petroleum Geologist, stated that this field could prove to one
of Mississippi's largest. The Pelahatchie Field offers a unique
opportunity to develop proved undeveloped oil and gas reserves. Field
studies by Mr. Michael Tierney Certified Petroleum Engineer in the year
2,000 indicate that an estimated 100,000,000 barrels (equivalent) could
be produced using primary production methods. Secondary and tertiary
methods employed later could probably double the amount of reserves
recovered.

The companies are commissioning an independent reserve review of the
field in preparation for developmental financing.



On Behalf of the Comapnies :

U.S. Oil and Gas Resources August Energy Corp. Consolidated Odyssey
Explorations

"Dennis Petke" "Jurgen Wolf" "Basil Pantages"


-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    U.S. Oil and Gas Resources
    Dennis Petke
    Director
    (604) 681-1559
    usoil@direct.ca
    or
    August Energy Corp.
    Jurgen Wolf
    President
    (604) 681-1559
    info@augustenergy.com
    or
    Consolidated Odyssey Exploration, Inc.
    Basil Pantages
    President
    (604) 718-2800
    basil@odysseyexplorations.com
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    REPSPONSIBILITY FOR THE ADEQUACY OF THIS NEWS RELEASE.