Stetson Oil & Gas Ltd.
TSX VENTURE : SSN

Stetson Oil & Gas Ltd.

May 15, 2008 07:00 ET

Stetson Closes Acquisition of Joint Venture in SE Saskatchewan

CALGARY, ALBERTA--(Marketwire - May 15, 2008) - STETSON OIL & GAS LTD. ("Stetson") (TSX VENTURE:SSN) today announced that it has closed its assumption of the interest of Vast Exploration Inc. ("Vast") in a joint venture arrangement with Samson Oil and Gas Inc. ("SOGI") in SE Saskatchewan (the "SamVast JV"). Stetson will be the operator of the joint venture and will have a 50% working interest. As consideration for the assumption of this interest in the JV, Stetson has agreed to reimburse Vast for $137,500 of costs incurred to date on the JV and will reserve a 5.0% non-convertible gross overriding royalty.

The SamVast JV was created in September 2006 to jointly acquire and develop petroleum and natural gas rights with First Nations Bands in Saskatchewan by providing access to lands pursuant to the Treaty Land Entitlement ("TLE") process. Under the TLE process, open Crown mineral rights can be "frozen" for a term of 18 months whereupon, if surface rights are acquired, the mineral rights will be allocated to the First Nations Band that applied for the "freeze". The joint venture then has the right to farmin on these lands as to a 100% working interest subject to Saskatchewan Crown equivalent royalties, plus 5.0%. Stetson's assumption of Vast's interest in the SamVast JV is subject to the receipt of approval of the TSX Venture Exchange. The SamVast JV has signed agreements with four First Nations Bands, however, at present no land or mineral rights have been acquired by the SamVast JV.

In connection with the joint venture, Stetson intends to focus its exploration efforts on the Bakken production fairway in SE Saskatchewan. The Bakken formation produces light 42 to 44 degree API oil and has been developed primarily by horizontally drilling four wells per section. Newly developed fracturing technology has resulted in improved productivity rates and recoverable reserves, with individual wells initially producing at rates as high as 250 bopd.

The Bakken area has drawn significant interest in recent months, as prices paid for leases in SE Saskatchewan at Crown land sales have been robust. The February 11, 2008 Crown landsale brought in bids totaling $132,399,338 on 43,784 Hectares of land from the SE Saskatchewan region alone, representing an average bid of $3,024 per Hectare. Stetson believes that the SamVast JV will provide a competitive advantage in acquiring rights in this area.

Vast and Stetson are Non Arms Length Parties pursuant to the rules of the TSX Venture Exchange as they have common directors and officers.

Stetson is an emerging junior oil and gas company with exploration, development, and production programs in Saskatchewan and Alberta.

STETSON OIL & GAS LTD.

Bill Ward, President & CEO

Cautionary Note Regarding Forward-Looking Information: This press release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the benefits of the assumption; impact of technology; future financial or operating performance of the Company and its projects,; and potential of lands in SE Saskatchewan. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social risks and uncertainties; risks relating to oil and gas exploration and exploitation activities; reliance on technology; and delays in obtaining regulatory approvals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

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