SOURCE: Paxton Energy, Inc.

October 01, 2007 17:00 ET

Paxton Energy Announces Updates on East Thirteen and La Salle County, Texas Projects

CARSON CITY, NV--(Marketwire - October 1, 2007) - Paxton Energy, Inc. (OTCBB: PXTE), an oil and gas company with operations focused on the exploration and development of over 11,000 acres in South Texas, reported an update today on the proposed acquisition of the East Thirteen Field, located in Frio and Dimmit Counties and field operations from the Cooke and Storey Ranches in La Salle County, Texas.

The Company previously announced a letter of intent to acquire the East Thirteen Field, which included various working interests in producing oil and gas wells and associated proven un-developed locations. During the review process, production rates, field operations and asset valuations were affected by regional weather conditions and other factors. In addition, unprecedented market prices for oil have impacted the economics of the proposed purchase whereby the management have determined it necessary to suspend the East 13 acquisition until further notice. The parties continue to have discussions on other opportunities of merit, which could include Paxton participating in the drilling of PUD locations at the East Thirteen field.

The Company continues to focus on its development operations in La Salle County on our two newly discovered Escondido and Olmos fields, and these fields are being mapped and additional drill sites permitted. The company will be providing further updates as available on three previously drilled wells that had been shut-in for work-over, which are expected to resume production in the near future and on our fall drilling program.

About Paxton Energy, Inc.

Paxton Energy, Inc. is an energy exploration and development company with minority working interests in the Cooke Ranch area of La Salle County, Texas, all operated by others. Paxton has up to a 31.75% working interest in the Cooke Ranch 8,884 gross acre lease and up to a 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 PRESENCE OR RECOVERABILITY 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 THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.

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