Stetson Oil & Gas Ltd.
TSX VENTURE : SSN

Stetson Oil & Gas Ltd.

February 18, 2010 16:55 ET

Stetson Provides Operational Update

TORONTO, ONTARIO--(Marketwire - Feb. 18, 2010) - STETSON OIL & GAS LTD. (TSX VENTURE:SSN) ("Stetson" or the "Company") is pleased to provide an operational update on its North Dakota property.

As previously disclosed, the Company has installed a pump-jack on the Stetson MHA 1-11H-148-90 horizontal well and is continuing to evaluate productivity of the Bakken formation.

Oil production commenced in January 2010 with current production rates from the well estimated at approximately 50 bopd. The well is currently produced to temporary tankage at the well site, and Stetson expects to construct a single well battery to allow pipeline spec oil production to be sold directly to a crude oil purchaser once production rates have stabilized near current levels. Further evaluation of potential prospective zones, as indicated by oil and gas shows encountered during drilling operations, will remain postponed while Bakken production is evaluated.

To date, 1,470 bbls of 42 degree API oil have been produced from the well, in addition to approximately 34,260 bbls of water. During the initial well completion operations, approximately 35,000 bbls of water was used to frac the well.

Stetson believes that the production results obtained to date confirm that the well is situated in the Bakken oil pool. To further evaluate its lands and identify possible additional drilling locations, the Company and its partners have agreed to acquire approximately 220 miles of existing 2D seismic data. Interpretation of this seismic data is expected to be completed within the next 45 to 60 days and will allow the partners to determine the direction of further exploration efforts.

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

Disclaimers:

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Net present value, net present value per share, future projected net revenue and similar measures are estimated values and do not represent fair market value.

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 prospectivity and potential future production rates; future exploration plans and budgets; future production plans and budgets; and the future financial and operating performance of Stetson and its projects. 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; risks relating to oil and gas exploration and exploitation activities; oil and gas prices; acquisition risks; risks relating to greater resources, time and attention will be spent on the Acquisition than anticipated; and delays in obtaining regulatory approvals. Although Stetson 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. Stetson 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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