Cannon Oil & Gas Ltd.
TSX VENTURE : COO

August 26, 2005 15:50 ET

Cannon Acquires Interest in 19,200 Acres

CALGARY, ALBERTA--(CCNMatthews - Aug. 26, 2005) - Cannon Oil & Gas Ltd. (TSX VENTURE:COO):

Disclaimer : Clarification of Forward Looking Statements.

Statements throughout these financial documents that are not historical facts may be considered forward looking statements. These forward looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the company's objectives, goals or future plans are forward looking statements. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to any number of factors, including such variables as new information regarding recoverable reserves, changes in demand for, and commodity prices of oil and natural gas, legislative, environmental and other regulatory or political changes, competition in areas where the company operates and other factors discussed in these documents.

Cannon Oil & Gas Ltd. is pleased to announce that it has entered into an agreement whereby it has the right to earn a 50% interest in up to 30 sections of P&NG leases in the Luseland area of Saskatchewan. There is established gas and oil production in the area from the Mannville as well as the Viking and Bakken zones. Cannon and its partner are currently developing a seismic and drilling program on the property.

Cannon has also begun work on its Roncott property in southern Saskatchewan where it has re-activated two wells, adding approximately 15 bopd of net oil production and is currently evaluating an additional prospective zone.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cannon Oil & Gas Ltd.
    Robert J. Tessari
    President
    (403) 237-8407
    (403) 263-8445 (FAX)
    or
    Cannon Oil & Gas Ltd.
    #800, 800 - 6th Avenue S.W.
    Calgary, Alberta T2P 3G3