OMDA Oil and Gas, Inc. Reaches First Settlement in OMDA, et. al Vs. Lanza, et. al. Lawsuit.

HOUSTON -- Headline of release should read Settlement in OMDA, et. al (sted Settlement Agreement in OMDA, et al).

The corrected release reads:

OMDA OIL AND GAS, INC. REACHES FIRST SETTLEMENT IN OMDA, ET. AL VS. LANZA, ET. AL. LAWSUIT

OMDA Oil and Gas, Inc., an oil and gas production company (OTC.PK:OMOG), through its chairman, Adam Barnett, today announced that the company has settled with Barnabas Capital Corporation, Hoactzin Partners and Tengasco, Inc. regarding a 12 well re-completion program in the Concord Dome Field, near Palestine TX. The Agreement with the current operator and its investor group settles claims that conveyance of interests in the leases may be invalid and was done under fraudulent conditions by unauthorized persons. Although OMDA had not yet named the settling parties as defendants, settlement with OMDA at this time was prudent and in their best interests. The current Operator has already spent more than $800,000 in acquiring interests in the leases and reworking the wells during the past six months and anticipates significant additional expenditures over the next two to three months prior to bringing these wells on line.

Under the terms of the Agreement, OMDA will have no requirement to contribute capital, but will receive a 37.5% working interest after pay-out of all reworking expenditures in the twelve well program. Should OMDA not prevail in certain claims asserted in the Litigation against Joe Lanza and others, then OMDA would be required to re-convey 30% of the 37.5% interest to the current operator, leaving OMDA with 7.5%. In addition to the working interest, OMDA would also receive an ownership interest in the equipment valued at the same percentages and under the same terms as its working interest. OMDA also received an option to participate on a non-promoted basis ("heads up") up to a 37.5% working interest in future wells to be drilled on adjacent properties to the initial 12 wells on new acreage recently acquired by the Operator.

Adam Barnett, Chairman stated, "I cannot express in just a few short words here what a major first victory this is so early in the recently filed lawsuit against former management and co-conspirators. The fact that this group, who had not yet even been named as a defendant, upon reviewing our case proper to date, has come to the conclusion that it is prudent to settle now rather than risk the outcome of the lawsuit, speaks volumes of their opinion of the strength of our case against Lanza et. al." Barnett went on to say, "The President of the Operator has stated that he anticipates that once the wells are on production, which should be in the next few months, he expects revenues to be strong enough to pay out all his costs in less than twelve months, at which time OMDA will then begin receiving its respective share of cash flow for the balance of the life of the wells." Additionally Barnett stated, "Though normally in a case like this a first round of amended pleadings are not usually filed until after initial discovery and depositions have been taken, our counsel informs me that the investigation over the past month has uncovered so many additional causes of action against the Defendants that I have approved preparation of a first amendment to the pleadings which will be filed in the Harris County, Texas, Court shortly.

About OMDA Oil and Gas, Inc.

OMDA Oil and Gas, Inc and it's wholly owned subsidiary's, OMDA Oil & Gas Management, Inc and Texas OMDA Drilling & Operating, Inc are in the business of oil and gas production and lease acquisition. Currently the Company owns average participation interests approaching 47%, in 355 producing and non-producing oil and gas wells in Louisiana and Texas, as well as the majority of the working interest in an undeveloped 1,116 acre, horizontal play in the Panola Field, Panola County, Texas.

This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.