Paradigm Oil & Gas Inc. Acquires Interests in Highly Prospective Acreage in Southern Alberta.

CALGARY, Alberta -- Two agreements have been signed by Paradigm Oil & Gas Inc. (OTCBB:POGI) to acquire interests in Todd Creek and Hillsprings properties in the Southern Alberta Foothills, about 150 kilometers south of Calgary. Not only are these properties highly prospective, but are also in close proximity of a gas export pipeline to the United States.

Todd Creek:

The company has acquired 10% interest in 13.75 sections (8800 acres) of land for US $298,631, and has an option to earn 7.5% interest in an additional seven section (4480 acres) by contributing 10% of drilling costs. Contribution to each well will earn an interest in two sections of land. This option is valid until December 31st 2006.

A test well drilled in Section 16, Township 9, Range 2 W5 is included in the transaction, the results of which have not been released. Further details will be provided once the tight hole status has been lifted. The next proposed well will likely be drilled at location 13-28-9-2W5 with anticipated production from two reservoirs. Estimates indicate initial potential daily production up to 400 barrels of oil equivalent. It is anticipated that it will require more than 20 such wells to fully exploit the reservoirs in the project area.

Producing wells in the area typically are of long life with minimal declines. The gas is sweet with minimal sulfur or CO2 and generally receives excellent prices. Existing wells on the Todd Creek prospect typically produce at depths between 1,600 and 1,900 meters.

The operator has obtained a license to build a gas plant in the project area, for up to 10,000 mcf/day of gas. It is anticipated to come on stream towards the end of 2005. This plant will be located close to the gas export line to the United States and will considerably facilitate access to this market.

Hillsprings:

The company has acquired 5% interest in one section (640 acres) of land located at Section 34, Township 5, Range 29 W4M for a consideration of US $207,383.00. Paradigm also has an option to acquire 5% interest in a further two and a quarter section in the surrounding area for US $103,691.00. This option expires on July 1st 2005.

The operator, Talisman Energy, is expected to drill a well (10-34-5-29W4) before mid-year. Talisman has drilled several successful wells in the vicinity, and it is expected that the proposed well will exceed 600 barrels of oil equivalent per day.

In addition to the monies paid for the Todd Creek and Hillspring properties, Paradigm has paid US $50,000 for an extension to the agreement options.

It is anticipated that the company will release additional technical information, drilling schedules and results as they become available.

About Paradigm Oil & Gas Inc.

Paradigm is a growing exploration company focused on acquiring small interests in high impact high revenue projects while minimizing risk. The Company's launch pad is on the exploration of its land portfolio comprised of working interests in highly prospective acreage in the Vibrant Alberta oil and gas basin. Paradigm's strategy is to expand this focus Internationally by building alliances and partnerships with well established producing companies, world class technical teams and Internationally experienced management team.

On behalf of the Board of Directors,

Safe Harbor Statement

As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; the Company's ability to execute its business model and strategic plans; and the risks described from time to time in the Company's SEC filings.

Paradigm Oil & Gas Inc. (OTC Bulletin Board:POGI)