SOURCE: Ethanoil and Gas Corp.

August 29, 2007 09:20 ET

Ethanoil Acquires 100% Working Interest in Saskatchewan

LAS VEGAS, NV--(Marketwire - August 29, 2007) - Ethanoil and Gas Corporation (PINKSHEETS: EGCP) announces that through the acquisition of 1259529 Alberta Limited, the company has acquired a 100% working interest in the petroleum and natural gas rights associated with 115,272 acres in the Torch Lake area of the Province of Saskatchewan, Canada. The Torch Lake Property is a shallow gas prospect located over the northern margins of an ancient inland seaway located under the Great Plains, the Williston Basin. 1259529 Alberta Limited is an Alberta, Canada corporation located in Sherwood Park, Alberta that owns Special Exploration Permit EP3072 in the Province of Saskatchewan, Canada. This Exploration Permit consists of the petroleum and natural gas (P&NG) exploration rights on the 115,272 acre block of land east of Prince Albert in the Smeaton and Torch Lake areas of Central Saskatchewan.

Ethanoil and Gas has acquired 100 percent of the shares of 1259529 Alberta Limited through the issuance of 1,000,000 shares of Ethanoil and Gas Corporation to Mr. John Davenport, the sole shareholder of 1259529 Alberta Limited. Effective immediately, Mr. Davenport has been appointed President and CEO of Ethanoil and Gas Corporation and retains the position of Treasurer of the Corporation. Mr. Joel Boodoosingh, formerly President and CEO, is appointed Secretary of the Corporation. Both Mr. Davenport and Mr. Boodoosingh retain their seats on the Board of Directors of Ethanoil and Gas Corporation.

John N. Davenport is an independent businessman, Power Engineer, software developer and educator with almost 30 years experience in the energy sector in both power generation and oil and gas industries. Mr. Davenport has extensive experience in the capital markets as a venture capitalist, investor and as President of Amorak Capital Corp., an independent private investment firm.

Stated Mr. Davenport, "This acquisition marks the beginning of our business plan and exciting times for Ethanoil and Gas. We're moving from a society dependent on conventional energy sources to a society that must develop alternative energy sources. Our objective is to hedge Ethanoil's future with the simultaneous pursuit of both conventional and alternative energy projects. We're assessing multiple opportunities in both areas and we think there are some great opportunities out there. In a way, you could say that Torch Lake has lit the fire for Ethanoil and Gas."

About Ethanoil and Gas Corporation:

Ethanoil and Gas Corporation (EGCP) is an independent diversified energy company focused on the development of conventional and alternative energy assets. The management and directors of Ethanoil and Gas recognize that energy delivery to consumer and industrial markets is poised at the edge of several paradigm shifts. Declining conventional energy sources and growing environmental imperatives are driving the development of alternate energy sources and means of delivery. Ethanoil and Gas is focused on the development of long-term, sustainable energy solutions through the cultivation of innovative strategies that directly respond to the most recent developments in the energy and technology sectors.

Safe Harbor Statement:

Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.

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