Shellbridge Oil & Gas, Inc.

Shellbridge Oil & Gas, Inc.

October 20, 2005 09:00 ET

Shellbridge Updates Production Target and Field Activities

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Oct. 20, 2005) - Shellbridge Oil & Gas, Inc. ("Shellbridge")(TSX:SHB) is pleased to update its field operations, exploration activity and Fiscal 2005 year-end production target.

Shellbridge was listed and began trading on the TSX on Wednesday, October 5, 2005. It was formed by the shareholders of Dynamic Oil & Gas, Inc. to acquire properties formerly held by Dynamic in British Columbia and Saskatchewan.

Under the plan of arrangement forming Shellbridge, management estimated that the Company would have initial daily production rates at 900 barrels of oil equivalent (boe/d).

By Fiscal 2005 year-end, management believes that Shellbridge's total production will reach approximately 1,350 boe/d, consisting of 80% heavy crude oil and 20% natural gas. This would represent a 50% increase over current production rates.

Mantario, Southwest Saskatchewan

Shellbridge currently operates production from 11 wells, in which it has an average working interest of 72.7%. A further seven cased and standing oil wells at an average working interest of 64.3% are all awaiting tie-in. One recently-completed natural gas well at a working interest of 75% is expected to be tested and on-stream in the next few weeks.

We are presently in the process of expanding our production capacity through the construction and installation of a heater-treater battery with a planned daily capacity of up to 3,500 barrels of fluid per day (oil and/or water). The battery is expected to be in full operation by month-end.

Also at Mantario, we are conducting a 3-D seismic program, the data from which will be used to pick new locations and expand our drilling operations. By fiscal year-end, we expect to drill a total of four new oil and/or natural gas wells in southwest Saskatchewan.

Rigel, Northeast British Columbia

We recently signed a farmin agreement to earn a 40% working interest in five and a half sections of land and two commitment wells. Our working interest will be earned through the equalization of past land costs and the participation at 50% in the two commitment wells.

Both commitment wells, expected to be drilled and tested by fiscal year-end, will target crude oil and natural gas in the Halfway formation.

Pica, Northwest Alberta

We are presently drilling one exploratory natural gas well in a new project area. Our working interest in four sections of land is 12.5%.

Cypress and Orion, Northeast British Columbia

Shellbridge currently is producing natural gas from five wells at Cypress, in which it has an average working interest of 46%. At Orion, we presently have one cased and standing gas well. Commencement of further activity in the Cypress and Orion areas is pending further evaluation.


Shellbridge has an experienced professional and technical team of employees and consultants committed to growing the Company. David Grohs has resigned from his position of Vice President, Production, effective October 30, 2005, and is continuing his services pursuant to a consulting arrangement.

Shellbridge has a large land position in Western Canada comprised of 195,394 gross acres (98,795 net). Approximately 80% of our total acreage is undeveloped, with 62% of it located in northeastern British Columbia.

Our new website at will provide shareholders and potential investors with timely information updates and stock quotes.

Shellbridge Oil & Gas, Inc. is a Canadian based energy company engaged in the production and exploration of Western Canada's natural gas and oil reserves. The Company owns working interests in development and early-stage exploration properties in southwestern Saskatchewan, and northeastern and southwestern British Columbia.

On Behalf of the Board of Directors,

Wayne J. Babcock, President & CEO

Forward-Looking Statements

The above disclosure may contain statements that are forward-looking in nature. Statements preceded by the words believe, expect, anticipate, plan, intend, continue, estimate, may, will, and similar expressions are forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to known and unknown risks and uncertainties and other factors referenced in the corporation's continuous disclosure filings. Therefore, the corporation's actual results may be materially different from those expressed or implied by such forward-looking statements.

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