HOUSTON, July 6, 2005 (PRIMEZONE) -- OMDA Oil and Gas, Inc. (OMOG), an oil and gas production company (Pink Sheets:OMOG), through its Chairman, Adam Barnett, announced that on advice of Corporate Counsel Martin Nathan, the Law Firm of Zimmerman, Axelrad, Meyer, Stern & Wise has been engaged as lead counsel in the suit originally filed by the Company on March 29th 2005, against former Management and other affiliated parties. The Company is seeking return of assets plus actual damages in the amount of at least $36.5 million and Exemplary damages and Declaratory Judgment. Primary assets the Company is seeking return of include, but are not limited to: OMDA Oil & Gas Management, Inc., OMDA Oil & Gas Services, Inc. and SHWJ Oil and Gas. Current OMDA Management is seeking any and all converted or misappropriated assets along with appropriate damages to be returned to the rightful hands of OMOG shareholders.
Adam Barnett stated, "Our counsel has done an unbelievable job of unraveling the web of deception it appears that former management has woven with the millions of dollars of viable oil and gas assets that have passed through OMDA during their tenure. With the continuously increasing price of oil and gas, the value of these assets has increased significantly and justify the increased cost of engaging the highly respected Zimmerman, Axelrad firm, well-known for its expertise in litigation of issues similar to those involved here, which in turn will hopefully expedite the favorable outcome I feel the shareholders deserve. Nathan will continue to assist in the discovery phase of the litigation, but will be able to devote more time and attention to OMDA's drilling projects and prospective acquisitions." Barnett went on to say, "I strongly recommend any shareholder or prospective shareholder to spend some time looking at the filings on our legal update section of our website, particularly this most recent filing. It should demonstrate how strong a case we really have in repatriating what we believe could be tens of millions of dollars of assets as well as cash damages."
On July 1, 2005 a Second Amended Petition was filed by Zimmerman Axelrad on behalf of OMDA in the District Court Of Harris County, Texas, 215th Judicial District. Cause No. 2005-23020, captioned Omda Oil And Gas, Inc., Plaintiff vs. Joe Lanza, Morgan Wilbur, III, And Richard I Michael, Trustee of "007 Trust", Monte Anderson, Tom Neely And David Taylor, Defendants. A copy of this newly filed petition along with the previously filed petitions and a copy of the executed trust agreement establishing ownership by OMDA of the three above mentioned companies can be found at OMDA's website at http://www.omogoil.com/legal_updates.html
Operational Update on Active Properties
Young Oil Project (20% Working Interest) -- The first two wells have been drilled to total depth. A third well going specifically after natural gas was preparing to be "spudded" last week when a problem with the rig developed. The operator informed us that the rig should be operational some time today with total depth reached later in the week. After a two week delay in getting an acidizing crew on location, the Gilreath No. 1, which was the first well drilled with good oil shows, is now still being swabbed. Results should be available shortly. The Second well, the Pryor No. 1, while showing oil does not appear commercial and will probably be plugged. With these developments, and barring any further delays, the balance of the six wells are now projected to be drilled over the next three to four weeks.
Patroon Prospect (15% Working Interest) -- The operator has informed the company that site preparation is being completed, and barring any unforeseen circumstances the rig is scheduled to be on location by the third week of July. This well is a deeper 6,000 ft. lower risk wildcat which should take around ten days to reach total depth. If successful, the company has as many as nine additional offset locations.
About OMDA Oil and Gas, Inc.
OMDA Oil and Gas, Inc and its wholly owned subsidiaries: OMDA Oil & Gas Management, Inc., Texas OMDA Drilling & Operating, Inc and OMDA Oil & Gas, Inc. (Texas) 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 100% gross interest in an undeveloped 1,116 acre, horizontal play in the Panola Field, Panola County, Texas. Current projects include a 15% working interest in an 800-plus acre play in Shelby County, TX and a Carried back-in working interest of at least 7.5% up to 37.5% in a 12 well workover play in the Concorde Dome Field in Andersen County, TX. The company is also currently in partnership with Young Oil Corp, the largest Oil and Gas producer in Tennessee, on 46,000 acres in North Central Tennessee with an initial 20% interest in a six well program and a first right of refusal on any other prospects on the Young leases.
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.