SOURCE: Bonanza Oil and Gas, Inc.

March 04, 2010 09:45 ET

Bonanza Oil and Gas Reports 50 Percent Increase in Production of the Jackson Well

HOUSTON, TX--(Marketwire - March 4, 2010) -  Bonanza Oil and Gas, Inc., a Nevada Corporation (OTCBB: BGOI) (the "Company"), an independent oil and gas company, is pleased to announce that the production level of the Jackson Well, in the past couple of months, has increased by approximately 50% after performing re-fracturing stimulation of the well.

The Jackson well is in the Apclark Field, Borden County, Texas, and is operated by Westerly Exploration, Inc. Apclark Field is 5 miles East of the Jo Mill Field and has produced over 54,000,000 barrels of oil.

The Company is continuing to evaluate other asset properties that may be purchased and/or merged into the Company. As of today, we have entered a Letter of Intent (LOI) for current production in Oklahoma, and are actively seeking additional producing opportunities. The transaction under LOI is subject to the drafting and negotiation of a final definitive agreement, performing due diligence as well as board approval of the Company. As such, there is no guarantee that the Company will be able to successfully close the above transaction.

Bill Wiseman, President/CEO, stated, "The Company is pleased with the improved performance in Apclark. We will continue to implement our business plan and strategy, by developing PUDS, and adding proven reserves to the Company."

About Bonanza Oil & Gas, Inc.:

Based in Houston, TX, Bonanza Oil and Gas, Inc. holds assets ranging from current producing properties, wholly owned prospects, to developing working interests in Proven Undeveloped CPUDS properties.

Forward-Looking Statement:

Some of the statements made by the Company in this press release are forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. The Company believes that its primary risk factors include, but are not limited to: production variances from expectations, volatility of product prices, inability to raise sufficient capital to fund its operations, environmental risks, competition, government regulation, and the ability of the Company to execute its business strategy, among others. Additional information concerning these and other important factors can be found within the Company's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors.

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