SOURCE: Paxton Energy, Inc.

August 03, 2006 12:30 ET

Paxton Energy Announces Drilling of Cooke No. 4 Offset Well in Cooke Ranch Field La Salle County, Texas

CARSON CITY, NV -- (MARKET WIRE) -- August 3, 2006 -- Paxton Energy, Inc. (PINKSHEETS: PXTE) announced today that Bayshore Exploration, LLC, project manager of the Cooke Ranch field in La Salle County, Texas, commenced drilling the Cooke No. 4 well and the well was spudded on July 31, 2006.

Bayshore Exploration estimates it will require two weeks to complete drilling operations on the Cooke No. 4 location which is an offset of the Cooke No. 3 discovery well. A Patterson UTI Drilling Rig No. 130 will drill the Cooke No. 4 well to a depth of approximately 7,000 feet.

About Paxton Energy, Inc.

Paxton Energy, Inc. is an energy Exploration Company specializing in the acquisition of participation interests in natural gas and oil prospects with significant reserve potential in North America. Paxton has up to 31.75% working interest in the Cooke Ranch 8884 acre field and up to 75% working interest in the Cooke Ranch within the AMI. For further information, please visit the Company's website at http://www.paxtonenergyinc.com

THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE DRILLING OR OTHER EXPLORATION OR DEVELOPMENT RESULTS, THE ACTUAL PRESENSE OR RECOVERABLITY OF ESTIMATED RESERVES, THE ABILITY TO ESTABLISH RESERVES EQUAL TO THE POTENTIAL OF EXPLORATION TARGETS, PRODUCTION AMOUNTS OR REVENUES, DRILLING AND EXPLORATION COSTS OR SCHEDULES OR SIMILAR MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.

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