Stetson Oil & Gas Ltd.
TSX VENTURE : SSN

Stetson Oil & Gas Ltd.

June 23, 2009 13:09 ET

Stetson Oil & Gas to Settle Outstanding Debt

CALGARY, ALBERTA--(Marketwire - June 23, 2009) -

NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES

STETSON OIL & GAS LTD. (TSX VENTURE:SSN) ("Stetson" or the "Company") today announced that it has entered into settlement agreements with four creditors of the Company to settle $362,871 in outstanding notes and a loan payable (the "Debt"). In aggregate, Stetson will settle the outstanding Debt through the payment of $75,000 in cash and the issuance of 1,439,354 common shares of the Company at a deemed price of $0.20 per share. These transactions are all subject to final TSX Venture Exchange approval.

It is in connection with the notes payable that the Company restated its financial statements for the year ended December 31, 2007, and such restated financial statements were filed on April 27, 2009. When the 2007 annual financial statements were initially filed, it was thought that the Company had been legally released from the repayment of these notes due to the passage of time and the application of the Statute of Limitations (Alberta), and therefore the notes were written off. Stetson subsequently determined that the notes payable are subject to the laws of British Columbia, where the Statute of Limitations is five years and accordingly the Company had not been legally released from the liability and the notes payable should have continued to be recognized. The effect of the restatement on the December 31, 2007 financial statements was that notes payable increased from $nil to $234,171. In addition, the gain on the write-down of debt was reduced by the same amount resulting in an increase in net and comprehensive loss from ($877,134) to ($1,111,305). These changes had no effect on the Company's cash position for the year ended December 31, 2007. Moreover, it did not affect the Company's financial statements for the year ended December 31, 2008.

Stetson is an emerging junior oil and gas company with exploration, development, and production programs in Saskatchewan and Alberta, Canada and North Dakota, USA.

Bill Ward, President & CEO

Disclaimers:

Cautionary Note Regarding Forward-Looking Information: This press release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the completion of the transaction and the receipt of regulatory approval and the effect of the restatement on the Company; Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social risks and uncertainties; time and attention will be spent on the transaction than anticipated; and delays in obtaining regulatory approvals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

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