Basic Earth Reports 1st Quarter Earnings for Fiscal 2010.

DENVER -- BASIC EARTH SCIENCE SYSTEMS, INC. (OTCBB:BSIC) reported net earnings of $249,000, $.01 per share on a diluted basis, on revenue of $1.5 million, for the first quarter of fiscal 2010, ended June 30, 2009, compared with $1.4 million, $.08 per share on a diluted basis, on revenue of $3.3 million, for the same period ended June 30, 2008.

Chief Executive Officer and President Ray Singleton said, "Oil production for the first quarter was essentially the same as it was a year ago. However, our revenue and earnings declined because of the significant drop in the price of oil from a year ago. At $52 per barrel, our realized price for the first quarter was 57% lower than the $120 per barrel that we realized a year ago in the first quarter of fiscal 2009. Gas prices were also lower at $5.40 per thousand cubic feet, 46% less than the $10 per thousand cubic feet received for the year ago quarter."

Oil production for the first quarter of fiscal 2010 was 24,343 barrels, a slight increase over the 23, 911 barrels produced in the same period of 2009. Gas production was 35,186 thousand cubic feet in the first quarter of fiscal 2010 compared to 43,072 thousand cubic feet in the same period of 2009. This decrease was due to a decline in production from the Antenna Federal property in Weld County, CO, where we have recently drilled 16 new wells. This decline is considered normal for the first year of production in this field.

Total lifting costs (production costs plus severance taxes) for the first quarter dropped by 29% to $19.47 per barrel of oil equivalent compared to $27.28 for the same period in 2009. This was accomplished primarily by both shutting-in higher cost wells and by incurring lower severance taxes, a result of lower commodity prices.

"Our objective has been to lower our operating costs, and with the decline in oil prices, efforts to reduce service company costs are generating positive results. In the first quarter of fiscal 2010, we were able to reduce production expenses by 17% and overall lifting costs by 29%," said Singleton.

Operating Highlights

In May 2009, the Roscoe 2H-8 well located in eastern McKenzie County, ND, came online and is currently producing 100 barrels of oil per day. Basic Earth has a 6.5% interest in the well, located in the Bakken formation on the Banks Prospect. The well was drilled by and is operated by Panther Energy Company, LLC, Tulsa, OK.

Also in May 2009, the Halvorsen State 31X-36, a new Bakken well in Richland County, MT, began producing. During June, the well produced an average of 255 barrels of oil per day. The well has stabilized and all stimulation fluid has been recovered. Basic Earth has an approximate 26% working interest in the well, which is operated by XTO Energy Inc., Fort Worth, TX.

Commenting on the current state of the industry and the healthier oil price, Singleton said, "We are certainly much more comfortable with our cash flow given the rebound of the oil price from a low of $34 in December 2008 to the $60 - $70 range we have been experiencing more recently. We are continuing to examine what we believe are noteworthy opportunities in our primary areas of focus. We believe the projects we are currently evaluating have the potential to contribute to our objective of growing production in the future."

Basic Earth is an independent oil and gas exploration and production company with primary operations in the Williston Basin, the Denver-Julesburg Basin in Colorado, southern Texas and the Gulf Coast area. Basic Earth is traded on the Over The Counter Bulletin Board under the symbol BSIC. Information on Basic Earth can be found at its Web site: www.basicearth.net.

THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements contained in this release are forward-looking, and therefore involve uncertainties or risks that could cause actual results to differ materially. Forward-looking statements also include comments regarding assumptions regarding production rates and growth, operating costs, reduction of operation costs, commodity prices, industry outlook, future drilling activities, acquisitions and industry opportunities. Factors that could cause actual results to differ materially include price volatility of oil and gas, economic and political events affecting supply and demand for oil and gas, loss of customers for oil and gas production and government regulations. These and other factors are discussed in more detail in Basic Earth's filings with the Securities and Exchange Commission, including within the "Risk Factors" contained in the Company's Annual Report on Form 10-K filed for March 31, 2009. The Company disclaims any obligation to update forward-looking statements.

[TABLE OMITTED]