Titan Oil and Gas, Inc.

Titan Oil and Gas, Inc.

October 19, 2005 09:30 ET

Titan Oil and Gas, Inc.-Drilling Pace Increases, Closing in on Formation

SAN ANTONIO, TEXAS--(CCNMatthews - Oct. 19, 2005) - Titan Oil and Gas, Inc. (TNOG:OTC) is pleased to provide an update on its Kosciusko # 1 Well drilling operations. The pace of drilling is quickening, and the drill is closing in on the target formation.

Titan CEO Kent Jacobson comments: "We think it is appropriate to first include some history on this well for the benefit of new shareholders, and then to provide an update on the latest developments as we are now closing in on the target formation. Extra, 'behind the scenes' detail on drilling operations will be available by subscribing to our newsletter, which may be done at the Company's website, www.titanoilandgas.com. See the box at the top of the home page in order to subscribe.

"Shareholders may recall that this well is a re-completion of an existing well bore with a history of oil and gas production. Re-completion of existing well bores using new technology is much less costly than drilling new wells from the surface. The original well was drilled horizontally from the bottom of the well casing, deeper than a mile underground. Horizontal drilling is a technique used extensively in the Austin Chalk formation to more efficiently encounter fractured rock areas (which tend to be vertical in nature), many of which have proven to contain oil and gas under high pressure. Horizontal drilling is used with the objective of intersecting several of these fractured areas at once. We will utilize this technique with our additional target wells in this field, though we are doing the opposite in this particular case, by drilling vertically to a highly fractured area. Eventually, when the vertical well has been fully produced with the passage of time, we will have an additional horizontal target available to us from this well bore."

Titan Petroleum Engineer and Operations Manager Pete Maupin comments: "The Kosciusko # 1 Well was originally drilled horizontally, parallel to the fracture systems in the area because of the lease position at that time. The original well was drilled to a point approx. 1,000 ft. from the surface location and turned down to encounter the fractured area - essentially giving it the same potential as a vertical well bore. Now, we are drilling a new hole vertically from the old well bore into the major productive zone of the Austin Chalk formation that is highly 'fractured.' Our geologic data give a strong indication for the presence of oil and gas at this location.

"Although the original horizontal well bore was not done in the optimum direction, (due to difficulty obtaining ideal leases at that time), the original well produced over 7,000 barrels of oil, in addition to natural gas. At today's prices, this would mean a gross return of approx. one-half million dollars.

"The average production rate for wells in this field has been approx. 20,000 barrels of oil, in addition to natural gas. Our Stanley # 1B Well, a candidate for horizontal well re-completion, originally produced over 30,000 barrels of oil and a substantial quantity of gas. The Stanley #1, originally slated to be our water injection well, produced over 1,000 barrels of oil earlier this year, and in the past had produced appx. 28,000 barrels of oil along with substantial amounts of gas. We have additional candidates in this field for re-completion by horizontal drilling.

"In an earlier phase of Kosciusko drilling, we drilled vertically until we hit high pressures at an area higher than our intended depth, completed at that depth, and exploited oil at natural flowing pressure to sell to market. Once the natural pressure subsided, we decided to continue to our original target zone, commencing our current phase of operations."

Jacobson remarks: "As previously announced, we encountered problems earlier on in drilling operations that cost a great deal of extra time to resolve. One of these was a stuck drill bit, possibly due to shale heaving into the hole, which took quite some time to clear. Heaving shale made it necessary to switch to a mud system instead of drilling with field water, causing many problems as the rig was not properly set up for a mud system. In addition, the rig had many breakdowns which caused considerable delay.

"Another issue encountered was that the drill string was trying to follow the old horizontal well bore, and was not "kicking off" in a new direction as we had wanted, despite the fact that we had plugged the old well bore. Four different cement plugs were set in order to solve this problem. We re-commenced from a point much higher up in the hole than originally intended, and, using the directional drilling equipment, successfully steered the drill string away from the old horizontal well bore, and began to cut a new hole.

"A further issue was the lack of availability of an all-inclusive rig with a built-in mud preparation system. Drilling mud is forced through the drill string under high pressure, both cooling the drill bit, and returning to the surface bearing cuttings from the drilling. Due to lengthy waits for the ideal rig, we had to proceed using an auxiliary mud system that wasn't as efficient as one that is all-inclusive. This caused very slow progress in an area that was composed of very heavy clay and shale, which is very messy and slow to clear away from the drill bit.

"We are happy to report that we have left these problem areas behind and are now making good progress. The directional drilling equipment has been removed from the hole and we are proceeding with the rig alone. We are past the heavy clay and shale deposits, and seeing much more limestone in the cuttings, which is a good sign. Consequently, drilling speed has increased, there is less demand on the mud system, and we are now making good progress at an increased speed toward the target formation."

About Titan Oil and Gas, Inc. - Titan is an energy company engaged in oil and gas development, drilling and production. Titan follows a conservative business model, redeveloping oil and gas fields with a history of production, while expanding into exploration and development of new properties.

Certain information included in this communication (as well as information included in oral statements or other written statements made or to be made by Titan Oil and Gas, Inc.) contains statements that are forward looking, such as statements relating to the future anticipated direction of the Oil and Gas Industry, plans for expansion, various business development activities, planned capital expenditures, future funding resources, anticipated sales growth and potential contracts. These forward looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual operations or results to differ materially from those anticipated.

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