More Information: Petrol Oil and Gas, Inc.

PETROL has acquired mineral leases on approximately 165,000 acres in Eastern Kansas and Western Missouri. The majority of the Kansas leases are strategically located throughout Coffey County, with additional leased acreage in adjoining Anderson, Osage, Douglas, Franklin, Woodson, Greenwood and Lyon Counties. There are several aspects to this region that are advantageous for PETROL’s CBM development project: 

• Eastern Kansas and Western Missouri regions lie within the geologic boundaries of the Western Interior Coal Basin which, although undeveloped, has enormous CBM potential.

• Eastern Kansas is an emerging region for CBM production, and PETROL seized the opportunity to establish a significant lease position of contiguous acreage blocks.

• Drilling costs in this region are relatively low because the gas-productive coal seams occur at reasonably shallow depths (less than 2,000 ft deep). Also contributing to costs savings in a development drilling program is an excellent infrastructure that includes: good paved and gravel roads, limited topographical constraints, electricity and the availability of local oil & gas service companies.

• Coals and organic rich shales from PETROL’s test wells have been measured for gas content and thickness and appear to contain more than sufficient quantities of gas to be commercial.

• There is an extensive gas pipeline distribution infrastructure already in place in Petrol’s leased area (interstate pipelines from four major companies transect the PETROL leased acreage) thereby creating a potential sales outlet for produced gas. 
Since having acquired this lease position, several other oil and gas companies have initiated leasing programs to develop this CBM play including Quest Resources and Layne Christensen.

MILESTONES:. 
• Eastern Kansas and Western Missouri regions lie within the geologic boundaries of the Western Interior Coal Basin which, although underdeveloped, has enormous CBM potential. 
• January, 2002 - Initial mineral leases acquired in Eastern Kansas. 10,000 acres under lease. 
• August 2002 – Petrol initiates exploratory test drilling in Coffey County, Kansas. 
• December 2003 – Petrol completed an initial public offering of 2.4 million shares at $1.00/share. Leases exceed 100,000 acres. 
• April 2004 – NASD granted Petrol the trading symbol “POIG” and the permission to trade on the OTC:BB. 
• October, 2004 – Raised $6.76 million in equity offering. 
• November, 2004 – $10 million acquisition of assets (72 wells, gas-gathering infrastructure 3,000 mmcfpd) from Savage Resources. 
• •December, 2004 – Completed drilling its 18th well in its Coal Creek Project. 165,000 acres leased.