Paradigm Oil & Gas Inc.

Paradigm Oil & Gas Inc.

February 25, 2005 15:45 ET

Paradigm Oil & Gas Inc. Acquires Interests in Highly Prospective Acreage in Southern Alberta


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PARADIGM OIL & GAS INC.

OTC Bulletin Board SYMBOL: POGI

FEBRUARY 25, 2005 - 15:45 ET

Paradigm Oil & Gas Inc. Acquires Interests in Highly
Prospective Acreage in Southern Alberta

CALGARY, ALBERTA--(CCNMatthews - Feb. 25, 2005) - Two agreements have
been signed by Paradigm Oil & Gas Inc. (OTCBB:POGI) to acquire interests
in Todd Creek and Hillsprings properties in the Southern Alberta
Foothills, about 150 kilometers south of Calgary. Not only are these
properties highly prospective, but are also in close proximity of a gas
export pipeline to the United States.

Todd Creek:

The company has acquired 10% interest in 13.75 sections (8800 acres) of
land for US $298,631, and has an option to earn 7.5% interest in an
additional seven section (4480 acres) by contributing 10% of drilling
costs. Contribution to each well will earn an interest in two sections
of land. This option is valid until December 31st 2006.

A test well drilled in Section 16, Township 9, Range 2 W5 is included in
the transaction, the results of which have not been released. Further
details will be provided once the tight hole status has been lifted. The
next proposed well will likely be drilled at location 13-28-9-2W5 with
anticipated production from two reservoirs. Estimates indicate initial
potential daily production up to 400 barrels of oil equivalent. It is
anticipated that it will require more than 20 such wells to fully
exploit the reservoirs in the project area.

Producing wells in the area typically are of long life with minimal
declines. The gas is sweet with minimal sulfur or CO2 and generally
receives excellent prices. Existing wells on the Todd Creek prospect
typically produce at depths between 1,600 and 1,900 meters.

The operator has obtained a license to build a gas plant in the project
area, for up to 10,000 mcf/day of gas. It is anticipated to come on
stream towards the end of 2005. This plant will be located close to the
gas export line to the United States and will considerably facilitate
access to this market.

Hillsprings:

The company has acquired 5% interest in one section (640 acres) of land
located at Section 34, Township 5, Range 29 W4M for a consideration of
US $207,383.00. Paradigm also has an option to acquire 5% interest in a
further two and a quarter section in the surrounding area for US
$103,691.00. This option expires on July 1st 2005.

The operator, Talisman Energy, is expected to drill a well
(10-34-5-29W4) before mid-year. Talisman has drilled several successful
wells in the vicinity, and it is expected that the proposed well will
exceed 600 barrels of oil equivalent per day.

In addition to the monies paid for the Todd Creek and Hillspring
properties, Paradigm has paid US $50,000 for an extension to the
agreement options.

It is anticipated that the company will release additional technical
information, drilling schedules and results as they become available.

About Paradigm Oil & Gas Inc.

Paradigm is a growing exploration company focused on acquiring small
interests in high impact high revenue projects while minimizing risk.
The Company's launch pad is on the exploration of its land portfolio
comprised of working interests in highly prospective acreage in the
Vibrant Alberta oil and gas basin. Paradigm's strategy is to expand this
focus Internationally by building alliances and partnerships with well
established producing companies, world class technical teams and
Internationally experienced management team.

On behalf of the Board of Directors,

Safe Harbor Statement

As a cautionary note to investors, certain matters discussed in this
press release may be forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such matters
involve risks and uncertainties that may cause actual results to differ
materially, including the following: changes in economic conditions;
general competitive factors; the Company's ability to execute its
business model and strategic plans; and the risks described from time to
time in the Company's SEC filings.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Paradigm Oil & Gas Inc.
    Robert L. Pek
    President
    35 - 12880 Railway Avenue,
    Richmond, B.C., V7E 6G4
    (403) 827-1208