SOURCE: PACO Oil and Gas Inc.

May 15, 2008 16:37 ET

PACO Oil and Gas Inc. Reports Olsen Lease First Well Now Producing

SHERMAN, TX--(Marketwire - May 15, 2008) - PACO Oil and Gas Inc. (PINKSHEETS: POGC) (FRANKFURT: 4IP) -- an exploration company focused on purchasing under valued oil and gas leases -- reported today that the first well located on the Olsen Lease properties is now producing 30 bbls of oil per month. The company also announced that an additional 4 wells on the 105 acre Olsen properties located in Washington, Oklahoma are nearing completion. Preliminary testing on the wells revealed recoverable oil in all 6 wells. The necessary tanks and infrastructure to be capable and prepared to service all wells located on the Olsen property has been completed. The company expects to profit significantly with the current escalation in the price of oil once the remainder of the wells are on stream.

www.pacopetroleum.com

About PACO Oil and Gas Inc.

PACO Oil & Gas Inc. is an exploration company focused on purchasing under valued oil and gas leases with little or no production in the United States. Its experienced technical team then increases the leases production thereby significantly increasing the value.

PACO Oil & Gas concentrates its efforts developing under valued well communities into micro scale production facilities. These working assets have all been refurbished and outfitted with the latest in oil recovery equipment. Since many of these assets are shallow wells, former owners were technically unable to reach deeper deposits. PACO has the technical team to go further and more efficiently.

Forward-Looking Statements

Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.

Contact Information

  • Contact:
    Librada Thomas
    President
    PACO Oil and Gas Inc.
    940-634-1839