SOURCE: Omda Oil and Gas Inc.

June 21, 2006 09:00 ET

OMDA Oil and Gas, Inc. Elects to End Participation Agreement in 3 Well Drilling Project

HOUSTON, TX -- (MARKET WIRE) -- June 21, 2006 -- OMDA Oil and Gas, Inc. (PINKSHEETS: OMOG) announced today that it has terminated its agreement with KY-Tenn Oil Inc. (KTO) to participate in a three well drilling program.

KTO had proposed drilling three 2100 ft. wells to test the Chattanooga shale formation. Due to delays from extenuating circumstances on the part of the operator, OMDA Oil & Gas, Inc. has chosen not to participate in this project. OMDA has been refunded its entire deposit.

Adam Barnett, Chairman, stated, "While I was excited about the KY-Tenn project, I feel it is now in the best interest of OMDA to pursue other endeavors. I would rather not have our investments tied up in projects with anymore 'unforeseen delays.' That being said, there may still be other opportunities for us to consider with KY-Tenn in the future." Barnett went on to state, "I have already begun researching other potential projects where we can apply these funds, and I hope to have an announcement regarding these developments in the near future."

About OMDA Oil and Gas, Inc.

OMDA Oil and Gas, Inc. and its wholly owned subsidiaries, OMDA Oil & Gas Management, Inc., Texas OMDA Drilling & Operating, Inc and OMDA Oil & Gas, Inc. (Texas), are in the business of oil and gas production and lease acquisition. Currently the Company owns average participation interests approaching 47% in 355 producing and non-producing oil and gas wells in Louisiana and Texas, as well as 100% gross interest in an undeveloped 1,116 acre, horizontal play in the Panola Field, Panola County, Texas. Current acreage interests include a 15% working interest in 800 acres in Shelby County, TX and a carried back-in working interest of at least 7.5% up to 37.5% in a 12 well work-over-play in the Concorde Dome Field in Andersen County, TX.

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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