SOURCE: OMDA Oil and Gas, Inc.

October 30, 2007 07:00 ET

OMDA Oil and Gas, Inc. Offers Update on Porcari Case

HOUSTON, TX--(Marketwire - October 30, 2007) - OMDA Oil and Gas, Inc. (PINKSHEETS: OMOG) would like to take this opportunity to update all shareholders on current proceedings concerning Arthur J. Porcari.

On October 23, 2007, the Court of Appeals for the Fifth District of Texas rendered its decision in the appeal filed by Defendant, Arthur J. Porcari, of the Temporary Injunction issued by the trial court against him in OMDA Oil & Gas, Inc. v. Arthur J. Porcari, Cause No. 07-01850-M, pending in the 298th Judicial District Court, Dallas County, Texas. The Court of Appeals affirmed the temporary injunction in part and reversed it in part.

As to the limited parts of the injunction that were reversed, the Court of Appeals ruled that, based on federal constitutional grounds, the language used in the injunction was too broad, and constituted an impermissible prior restraint. However, notwithstanding any constitutional issues regarding prior restraint on free speech, a party may nevertheless ultimately be liable at trial for money damages for publishing defamatory and disparaging statements. The Court of Appeals did not disturb the trial court's ruling that OMDA has "shown a likelihood of success on the merits as to its defamation and disparagement claims, at the very least, in that a substantial number of the statements giving rise to those claims are clearly defamatory and disparaging, or both." The Court of Appeals also did not disturb the trial court's findings that the harm OMDA complains of is "imminent" and that "the Defendant's [Mr. Porcari's] conduct is directed towards and adversely impacts Plaintiff's [OMDA's] personal property interests, such as its share price and its abilities to successfully conduct ongoing business." Rather, the Court simply held that certain "expansive language" in the injunction order "does not represent the least restrictive means to prevent harm."

Nevertheless, OMDA strongly disagrees with the reasoning used in the decision, and believes the Court of Appeal's decision was erroneous. OMDA is in the process of considering its options in response to this development, including, but not limited to, an appeal to the Texas Supreme Court.

About OMDA Oil and Gas, Inc.

OMDA Oil and Gas, Inc. and its wholly owned subsidiaries, 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. 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.

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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