U.S. Oil and Gas Resources Inc.

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

Consolidated Odyssey Exploration Inc.

April 14, 2005 19:51 ET

Consolidated Odyssey Exploration Inc. & U.S. Oil and Gas Resources Inc. Review Progress in Acquisition of Pelahatchie Field


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: U.S. OIL AND GAS RESOURCES INC.

TSX VENTURE SYMBOL: USR

AND CONSOLIDATED ODYSSEY EXPLORATION INC.

TSX VENTURE SYMBOL: ODE

APRIL 14, 2005 - 19:51 ET

Consolidated Odyssey Exploration Inc. & U.S. Oil and
Gas Resources Inc. Review Progress in Acquisition of
Pelahatchie Field

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 14, 2005) -
Consolidated Odyssey Exploration Inc. (TSX VENTURE:ODE) and U.S. Oil and
Gas Resources Inc. (TSX VENTURE:USR): (herein together called the
"Companies") reported today the following update as to progress in each
Company completing the acquisition of a 1/3 working interest and a 24%
net revenue interest (being a 2/3 working interest and a 48% net revenue
interest in the aggregate) in approximately 2,000 acres in the
Pelahatchie Field, Rankin County, Mississippi (see the Companies' news
releases of February 18 and April 6, 2005).

The Companies will incur a total of $4,950,000 US cash which includes
$500,000 US payable out of production (being $2,475,000 US cash each) in
acquisition costs. To date, the Companies have finalized the following
interests in the Pelahatchie Field, namely:

1. the acquisition of the deep rights in respect to approximately 2,000
acres of the Field from Energy Resources Corp. and Impalas A.G., et al,
for $1,000,000 US (paid);

2. the acquisition of eight wells and the shallow rights to
approximately 2,000 acres from Sunrise Petroleum LLC for $1,500,000 US,
being $400,000 US down (paid), $400,000 US payable April 30, 2005,
$400,000 US payable June 30, 2005, the assumption of $250,000 US in
accounts payable ($200,000 US paid), with the balance of $50,000 US
payable June 30, 2005; and

3. the acquisition from Patterson Petroleum LP, LLLP and Patterson-UTI
Drilling Company LP, LLLP for $1,500,000 US (paid) of their judgment
pertaining to the Kargis Well, with a further $500,000 US payable out of
production. The Companies are actively pursuing foreclosure proceedings
in respect to the judgment in order to take title to the Kargis Well.

To date, ODE has funded $1,977,000 US and USR has funded $923,000 US. In
addition to the acquisition costs, the Companies have committed to an
additional $500,000 US cash each for the development of the Field. ODE
and USR will receive 100% of their acquisition and development costs
prior to any disbursement of revenue on a working interest basis. They
have also taken a first security interest on the applicable assets.

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

Two work-over rigs are now employed in the Pelahatchie Field, where the
companies own the majority of the working interest in over 2000 acres
with nine existing wells. Three wells have been put into production over
the last thirty days and two more are currently being reworked to new
zones. All nine existing wells are fully equipped and have behind the
pipe reserves which can be brought into production for moderate
expenditures. New drilling is being planned in the future to target
sizeable, known productive zones in the field. More details of this
project will be forth coming once third party reviews of the properties
are finalized.

ON BEHALF OF THE COMPANIES

Consolidated Odyssey Exploration Inc.

Basil Panatages, President

U.S. Oil and Gas Resources Inc.

Jurgen Wolf, President


-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Consolidated Odyssey Exploration Inc.
    Basil Panatages
    President
    (604) 718-2800
    (604) 718-2808 (FAX)
    pubco@odysseyexplorations.com
    or
    U.S. Oil and Gas Resources Inc.
    Jurgen Wolf
    President
    (604) 681-1559
    (604) 696-5161 (FAX)
    usoil@direct.ca
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.