Paradigm Oil & Gas, Inc.
OTC Bulletin Board : PDGO

Paradigm Oil & Gas, Inc.

December 01, 2011 09:09 ET

Paradigm Oil and Gas Inc. (PDGO) to Pursue Acquisition of Oil Producing Assets from Recently Signed Us$ 5.5 Million Securities Purchase Agreement

GUN BARREL CITY, TEXAS--(Marketwire - Dec. 1, 2011) - Paradigm Oil and Gas Inc. (OTCBB:PDGO) today reported that the recently signed US$ 5,500,000 Securities Purchase Agreement will be used to fund the acquisition of Oil producing assets. The Company is now formally conducting discussions with potential acquisition candidates.

As reported in the Company's recently filed 3rd Quarter financial statements, On October 24, 2011 the Company entered into a $5,500,000 Securities Purchase Agreement with an Investor. Under the terms of the agreement the Company issued to the Investor for purchase, a Convertible Debenture and an Equity Investment Agreement in exchange for a payment of $200,000. Under the terms of these agreements the Investor initially has paid the Company the $200,000 under a Convertible Debenture and has the right to purchase $2,000,000 in common shares of the Company in accordance with the terms of the agreement. In addition during the term of the agreement, the Investor may enter into an additional $300,000 Convertible Debenture and have the right to purchase an additional $3,000,000 in common shares of the Company under the exact terms of the initial Convertible Debenture and Equity Investment Agreement.

The Company intends to use the proceeds of the Equity Investments to acquire additional properties that are producing, can utilize their Transportable Enhanced Oil Recovery System and that have upside potential in increasing production and reserves. The Investor will be part of the due diligence process to acquire these properties and have agreed to fund the acquisitions once approved under the terms of the Securities Purchase Agreement.

The agreements are available for review under the 8K filed by the Company on November 21, 2011.

About Paradigm Oil and Gas Inc.

Paradigm Oil and Gas Inc. (OTCBB:PDGO) identifies and acquires energy properties with previously discovered known oil and gas reserves that have not either been fully produced from, or fully developed and defined. Utilizing new technologies like the Transportable Enhanced Oil Recovery Platform, Paradigm expects to generate profit from these previously producing wells. The company has acquired properties covering 1,148 acres all located in the State of Texas, USA. Combined there are a total of 23 existing previously producing wells and available spacing to support the drilling of approximately 30 new wells in the 3,800' to 9,000' range and approximately 100 new wells in the 800' to 1,800' range. For more information about Paradigm Oil & Gas, visit the website at www.ParadigmOilInc.com.

About the Transportable Enhanced Oil Recovery Platform (T-EOR)

The T-EOR Platform, a new and innovative industry oil production system, is a turnkey integrated and portable oil recovery platform that can be deployed quickly and economically to recover oil from previously producing oil wells with known oil reserves that have not been fully developed.

The T-EOR Platform is designed to gather oil production from non producing existing wells on a rotating daily/weekly basis to determine their natural flow rate. Wells that warrant a permanent infrastructure would then be equipped accordingly. Depending on each situation and level of effort and investment, Paradigm is expected to retain anywhere from 50-80% of the net revenue from the resulting production. The company has identified over 6,000 orphaned wells in the State of Texas alone that are potential oil producing candidates for the T-EOR Platform.

Safe Harbor

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Paradigm Oil and Gas Inc. with members of its management team as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

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