SOURCE: OMDA Oil and Gas, Inc.

May 20, 2010 06:00 ET

OMDA Oil and Gas, Inc. Announces the Cancellation of All Existing Preferred Shares and Will Provide a Thorough Update on Concord Dome by Next Week

HOUSTON, TX--(Marketwire - May 20, 2010) -  Adam Barnett, Chairman and President of OMDA Oil and Gas, Inc. (PINKSHEETS: OOAG), announces that the company has canceled all existing preferred shares of stock in OMDA Oil and Gas, Inc.

Initially these preferred shares were created and issued to Adam Barnett in order to protect the company and its shareholders against the possibility of a hostile takeover. While OMDA was engaged in its recently resolved, lengthy legal battle, it experienced a significant drop in market capitalization over a prolonged period of time. The depressed stock price put OMDA in a position of vulnerability to a hostile takeover which may have jeopardized the company's standing in its lawsuit at that time. Under advice of legal counsel, the company issued preferred shares with special voting rights to its Chairman Adam Barnett, so as to protect the interests of the shareholders. With the company's lawsuit now resolved, Mr. Barnett and the board of directors have unanimously agreed to and signed a resolution to cancel all preferred shares. With this transaction completed OMDA no longer has any preferred shares issued and will no longer retain majority control of the company. Consequently OMDA will now require proxy decisions from its shareholders in order to carry out any major changes to the stock structure including issuance of shares, stock splits, and raising the authorized shares among other actions. The previously announced decision to lower OMDA's authorized share total down to 250 million has already been board approved, signed and is being filed before the weekend.

"As president of OMDA, the biggest responsibility I have is to increase shareholder value," said Adam Barnett. "Our shareholders have stuck with us through many tough and challenging years while the share price was down. Now with the lawsuit behind us I have taken several measures including cancelling these preferred shares in order to instill confidence in our existing and prospective shareholders." Mr. Barnett continued, "Management has no intentions of any future stock issuances of any kind, reverse splits, raising the authorized shares or anything else that could adversely affect the company. That being said, those actions would only be possible with a majority vote from all of our stockholders of record. If the vote from our thousands of shareholders on any voted on issue came back 'no' then it would not and could not be done. We wanted to make a bold statement to our shareholders and send a clear message. By relinquishing majority control, management cannot take any share structure changing actions without the consent of a majority of our shareholders via proxy."

OMDA is also announcing that it expects to provide a thorough update on the Concord Dome project sometime next week.

"We are in the final stages of putting together a detailed report on Concord Dome. This project is very important to OMDA and we expect it will be a significant revenue stream for our company. I look forward to releasing this update in the very near future and to discuss the Concord Dome project with much more detail," stated Adam Barnett.

About OMDA Oil and Gas, Inc.

OMDA Oil and Gas, Inc. and its wholly owned subsidiaries, OMDA Oil & Gas Management, Inc. and Texas OMDA Drilling & Operating, Inc. and OMDA Oil & Gas, Inc. (Texas), are in the business of oil and gas production and lease acquisition.

This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, statements relating to the future anticipated direction of the Oil and Gas Industry, plans for expansion, various business development activities, planned capital expenditures, future funding resources, anticipated sales growth and potential contracts. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

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