SOURCE: Ethanoil and Gas Corp.

September 05, 2007 09:30 ET

Ethanoil Releases Geological Report

LAS VEGAS, NV--(Marketwire - September 5, 2007) - Ethanoil and Gas Corporation (PINKSHEETS: EGCP) today released a Technical Review of its Torch Lake Natural Gas Exploration Property in Central Saskatchewan. The review was prepared by the independent petroleum consulting firm, Sproule Associates Limited of Calgary, Alberta and conforms to the regulatory requirements of Canada's National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities. The review, "Torch Lake Technical Review.pdf," can be found at www.ethanoilandgas.com.

As announced on August 29, 2007, Ethanoil and Gas has acquired the exploration rights to the Torch Lake property through the acquisition of 1259529 Alberta Limited, which owns 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 situated over the northern margins of an ancient inland seaway, known as the Williston Basin, located under the Great Plains.

The company plans to explore and assess shallow siltstone and shale formations within the Colorado Group, the Montana Group and the overlying Laurentide Drift. Drilling for shallow gas can be far cheaper than conventional drilling. The depths are 300 to 600 meters through sandstones and shales. Lighter drilling equipment can be used and the holes can be drilled in one or two days. Although the wells are generally low flow producers, they tend to produce for long periods, decades in many cases. In addition, several wells per section of land can be drilled and put into production. With several wells per section, a project with a large land base can be very productive and economical.

Ethanoil and Gas Corporation (EGCP) is an independent 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.

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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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