U.S. Oil and Gas Resources Inc.

U.S. Oil and Gas Resources Inc.
August Energy Corp.

August Energy Corp.
Consolidated Odyssey Exploration

February 22, 2005 13:13 ET

U.S. Oil and Gas Resources, August Energy Corp. & Consolidated Odyssey Exploration Inc.: More Positive Indicators Reported in Drilling at Iowa Field


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: U.S. OIL AND GAS RESOURCES INC.

TSX VENTURE SYMBOL: USR

AND AUGUST ENERGY CORP.

PINK SHEETS SYMBOL: AENC

AND CONSOLIDATED ODYSSEY EXPLORATION

TSX VENTURE SYMBOL: ODE

FEBRUARY 22, 2005 - 13:13 ET

U.S. Oil and Gas Resources, August Energy Corp. &
Consolidated Odyssey Exploration Inc.: More Positive
Indicators Reported in Drilling at Iowa Field

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 22, 2005) - U.S. Oil
and Gas Resources (TSX VENTURE:USR); August Energy Corp. (PINK
SHEETS:AENC) and Consolidated Odyssey Exploration Inc. (TSX VENTURE:ODE)
(herein together called the "Companies") are pleased to announce the
following update on drilling. The seven inch intermediate casing has
been set in the Fred Dennison #2 well to 9000 ft, cemented in and
drilling resumed. At 6:00 a.m. this morning, the well was drilling at
9657 ft, with current penetration rate averaging 10 ft per hour. Mud
(drilling fluid) weight has been increased to 14.5 lbs from 10 lbs,
necessitated by a drilling break followed by 3400 gas units - all
positive indicators that we have penetrated the first of several
objective high pressure sands.

Correlative measurements with offset wells indicate the probability that
we have now penetrated the F-V Sand as expected. The F-V sand produced
4.8 bcf in a nearby well in a fault block south of this location and
could be a virgin reservoir in the fault block that we are drilling. As
reported in previous news releases, the Fred Dennison #2 is projected to
drill to a depth of 10,100 ft; a depth which should be sufficient to
also encounter the F-Y Nod B sand, a sand which Gilbert Talafuse,
consulting Petroleum Geologist, considers the sand that should contain
the greatest potential for this well. Seismic analysis and other
geological clues lead our consultants to believe that we could encounter
up to a cumulative 200 feet of high-pressure gas and condensate bearing
formations in the F-V and F-Y sand groups.

On Feb 14th, 2005, the company reported that the Fred Dennison No 2 well
had thus far logged approximately 70 feet of cumulative oil and gas in
four potentially productive sands, including a new pay zone at 8958ft
that yielded 4800 units of gas, which Mr. Talafuse calculates should
flow at a rate of 3,000,000 cubic feet of gas per day. A completion in
the high pressure F-V and/or F-Y sand groups is expected to deliver
rates considerably higher judging by results from offset wells in
adjoining fault blocks. The operator is confident that upon completion
of drilling to total depth is finalized; all the facilities and
infrastructure are in place, including a tie in to a gas sales line, to
put the well into immediate production.

On Behalf of the Companies:



On Behalf of the Comapnies :

U.S. Oil and Gas Resources August Energy Corp. Consolidated Odyssey
Explorations

"Dennis Petke" "Jurgen Wolf" "Basil Pantages"


Certain information included in this communication (as well as
information included in oral statements or other written statements made
or to be made by August Energy Corp and US Oil and Gas Resources Inc..)
contain statements that are forward looking, such as statements related
to the future anticipated direction of the oil and gas industry, plans
for future expansion, various property development activities, planned
capital expenditures, future funding resources, anticipated production
and reserve growth. These forward-looking statements are subject to a
number of known and unknown risks and uncertainties that could cause
actual operations or results to differ materially from those anticipated.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    U.S. Oil and Gas Resources
    Dennis Petke
    Director
    (604) 681-1559
    usoil@direct.ca
    or
    August Energy Corp.
    Jurgen Wolf
    President
    (604) 681-1559
    info@augustenergy.com
    or
    Consolidated Odyssey Explorations
    Basil Pantages
    President
    (604) 718-2800
    basil@odysseyexplorations.com
    The TSX-V Exchange does not accept responsibility for the adequacy or
    accuracy of this release.