California Oil & Gas Corp.
OTC Bulletin Board : COGC

California Oil & Gas Corp.

April 03, 2006 09:00 ET

California Oil & Gas Corp. Announces First Project in California's San Joaquin Basin

CALGARY, ALBERTA--(CCNMatthews - April 3, 2006) - California Oil & Gas Corporation (OTCBB:COGC) a junior Energy Exploration and Development company has entered into an agreement with Nomad Hydrocarbons, Ltd., Daybreak Oil & Gas Inc and three geotechnical professionals from the Bakersfield, California area. Our intent is to jointly explore an Area of Mutual Interest (AMI) in the southeastern part of the San Joaquin Basin in California. We are seeking fields that are in the one million barrel range based upon the size and production from analogous fields. Production in the region is typically from shallow depths of 1,000 feet to 3,000 feet. The oil is of low to medium gravity and can be trucked to refineries in the immediate area. California Oil & Gas has committed to a 25% (twenty five percent) participating interest in this project.

Five prospect areas have been identified and we are actively leasing lands on these prospects. As there is no modern seismic on any of the areas selected, the next step, after acquiring sufficient acreage on a prospect, will be to acquire a 3D seismic survey. Drilling exploration and development wells would follow interpretation of the 3D seismic.

In addition to the five identified prospect areas and based on our original technical analysis, the partners are actively investigating exploration of a much larger Area of Mutual Interest with the potential for larger accumulations of oil. Several farm-in opportunities have been identified on properties that we feel could benefit from modern production techniques and negotiations are underway on 3 of those prospects.

The San Joaquin Basin is a prolific oil producing area with a long history of production. In the vicinity of the proposed work area, two prominent fields produced 435.5 and 20.6 million barrels of oil respectively from the Pyramid Hills and Vedder sands.

On behalf of the Board

John G.F. McLeod

Forward Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that it can identify and acquire oil and gas properties, and that the proceeds of this private placement will be sufficient to enable the Company to do so. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.

WARNING: The Company relies on litigation protection for "forward looking" statements.

Contact Information

  • California Oil & Gas Corp.
    John G.F. McLeod
    President
    (403) 261-1965
    (403) 261-1941 (FAX)
    www.caloilandgas.com