SOURCE: Omda Oil and Gas Inc.

November 22, 2005 09:44 ET

OMDA Oil and Gas, Inc. Announces Initial Hook-Up and Sales of Three Tennessee Natural Gas Wells

Also Gives Update on Legal Action Against Former Management

HOUSTON, TX -- (MARKET WIRE) -- November 22, 2005 -- OMDA Oil and Gas, Inc. (OMOG), an oil and gas production company (OTC: OMOG), through its Chairman, Adam Barnett is pleased to announce the successful completion and initial sales from all three of its Gernt natural gas wells drilled with Young Oil Corp. The three wells were tied into the sales line on Friday and Saturday, and according to Young, they began producing at an approximate total of 120,000 cf/day. As the wells "clean up" by production, Young expects the production to increase over the first month and then stabilize. These wells typically show a small decline after a number of months and produce as long as 20 years. OMDA holds a 20% working interest in these wells.

As announced in a prior press release, these wells, as well as similar wells in the field are initially producing from the Monteagle and Ft. Payne zones. While there is a thick section of gas bearing shale in these wells, the cost of doing a full "frac" to commercially produce the shale has not been considered economical in the past. This type of procedure can cost as much as half again the price of drilling and completing the Monteagle and Ft. Payne; however, due to the current prices of natural gas, shale completions are now being done with excellent success in this field. If results from other wells in the field remain favorable, it is likely that one or more of our wells may be selected for a shale "frac" early next year.

Adam Barnett, CEO stated, "While the time from drilling to finally selling the gas from these wells turned out to be considerably longer than originally anticipated, management and consultants feel that the delays were caused by circumstance beyond Young's control. With this in mind and after results from these first three wells are further evaluated, it is my intent to start exercising our 'right of first refusal' allowing OMDA to participate in future gas wells of our choice on Young's 46,000 acres. The economic benefits verses the risks in this gas field are just too good at current prices to ignore."


While the company, on advice of counsel, has been under a somewhat self-imposed information gag, events have actually been moving at a relatively fast pace. While many details still cannot be released, a trial date has now been set by the court in Harris County, Houston TX, for April 17, 2006. Counsel has recently stated their opinion that OMDA's case has continued to get stronger as more information is discovered.

More information on both OMDA's Oil and Gas projects and legal actions can be found at the Company's website.

About OMDA Oil and Gas, Inc.

OMDA Oil and Gas, Inc and its wholly owned subsidiary's, OMDA Oil & Gas Management, Inc and Texas OMDA Drilling & Operating, Inc and OMDA Oil & Gas, Inc. (Texas) are in the business of oil and gas production and lease acquisition. Currently the Company owns average participation interests approaching 47%, in 355 producing and non-producing oil and gas wells in Louisiana and Texas, as well as 100% gross interest in an undeveloped 1,116 acre, horizontal play in the Panola Field, Panola County, Texas. Current acreage interests include a 15% working interest in 800 acres in Shelby County, TX and a Carried back-in working interest of at least 7.5% up to 37.5% in a 12 well work over play in the Concorde Dome Field in Andersen County TX, and is currently partnered up with Young Oil Corp, the largest Oil and Gas producer in Tennessee on 46,000 acres in North Central Tennessee, with an initial 20% interest in a six well program and a first right of refusal on any other prospects on the Young leases.

This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, statements relating to the future anticipated direction of the Oil and Gas Industry, plans for expansion, various business development activities, planned capital expenditures, future funding resources, anticipated sales growth and potential contracts.. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

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