LAS VEGAS, April 20, 2004 (PRIMEZONE) -- Lexington Resources, Inc. (OTCBB:LXRS) (the "Company") announces that further to its press release of February 26, 2004, that continued drilling on Coal Bed Methane ("CBM") gas targets on its Wagnon Lease in Pittsburg County, Oklahoma, have been rescheduled to commence in mid May, 2004. Two additional wells (Kyndal #2-2 and the Bryce #3-2) to be drilled on the property sequentially have been rescheduled due to the overwhelming demand for drill rigs caused by the active pace of drilling in the region. A total of four to five horizontal gas wells are planned on this lease. As with the previous successfully completed Kellster 1-5 well, the Company has contracted with one of the largest CBM experienced drillers in the State of Oklahoma.
The Company also announces that it has completed the purchase of a three year lease of approximately 300 acres spread over 5 sections located in Hughes County, Oklahoma as part of the area known as the Panther Creek Gas Prospect. The lease represents an average 81.5% net revenue interest in the acquired lands and a 100% working interest with gas targets being the Hartshorne Coal, and possibly the deeper Caney Shale zone. All possible producing zones on the property are controlled by the Company. Lexington Resources is in negotiations for additional tracts of prime acreage in the area in the gas-producing domain of Oklahoma's Arkoma basin.
About Domestic Coal Bed Methane Gas Production: Methane (natural gas) occurs in association with coal, the Nation's most abundant fossil fuel resource. Conservative estimates (Rice, 1997) suggest that in the United States more than 700 trillion cubic feet (TCF) of coal-bed methane exists in place, with perhaps 100 TCF economically recoverable with existing technology. Coal bed methane now accounts for about 7.5 percent of total natural gas production in the United States. Exploration costs for coal-bed methane are typically low, and the wells are cost-effective to drill. (Source: USGS website: http://energy.usgs.gov)
About Lexington Resources, Inc.: Lexington Resources, Inc. is a natural resource exploration company engaged in the acquisition and development of oil and natural gas properties in the United States. The Company expects to weight its development initiatives towards gas production.
For further information: www.lexingtonoilandgas.com
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THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING ADDITIONAL PROJECT INTERESTS, THE COMPANY'S ANALYSIS OF OPPORTUNITIES IN THE ACQUISITION AND DEVELOPMENT OF VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.