SOURCE: Paxton Energy, Inc.

October 11, 2007 14:15 ET

Paxton Energy Announces Operations Update for La Salle County, Texas Projects

CARSON CITY, NV--(Marketwire - October 11, 2007) - Paxton Energy, Inc. (OTCBB: PXTE), an oil and gas company with operations focused on the acquisition, exploration, and development of oil & gas projects in South Texas, reported an update today on the current operations at the Cooke and Storey Ranches in La Salle County, Texas.

Bayshore Exploration, LLC, the project manager for the Cooke Ranch project since 1985, has advised the Company that it has filed with the Railroad Commission to re-designate Bayshore as the operator of record for the Cooke and Storey Fields in La Salle County, Texas. In the second quarter of 2005, Bayshore engaged Alamo Operating Co. primarily for their deep drilling expertise and to manage the drilling of the Cooke #3 discovery well to 17,500 feet. Subsequent drilling success has resulted in the shallow development of the Cooke Ranch Escondido reserves with current operational changes focused on streamlining operations and lowering future development drilling costs and overheads.

Bayshore Exploration also provided a field inspection report on the Cooke and Storey Ranch Projects as follows;

The inspection identified several flow restrictions at the Cooke #3 compressor station which creates back pressure on the production from the Cooke #2 and Cooke #3 wells; this problem is being corrected by the installation of a low pressure manifold. The Cooke #5 is shut-in with 1600 psi wellhead pressure and Cooke #6 with 1140 psi of wellhead pressure awaiting completion of the pipeline tie-ins to the Cooke #3 compressor station. The Fielder #1 work-over to clean out the sanded perforations has been completed, and the well is now back in production.

About Paxton Energy, Inc.

Paxton Energy, Inc. is an energy exploration and development company with working interests in the Cooke Ranch area of La Salle County, Texas. Paxton has up to 31.75% working interest in the Cooke Ranch 8,884 gross acre lease and up to 75% working interest in the Storey Ranch 2,268 gross acre area located in La Salle County, Texas.

For further information, please visit Paxton's website at www.paxtonenergyinc.com or call toll free 866-972-9866.

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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