Western Standard Energy Corp with Coastal Petroleum Set to Acquire New Oil Prospects

Thursday December 13, 12:48 pm ET

WILLISTON, N.D.--(BUSINESS WIRE)--Western Standard Energy Corp., (the "Company") (OTCBB:WSEG - News), an oil and gas exploration company focused on securing energy resources for America, with prospects in Valley County, Montana and Stark County, North Dakota, is pleased to announce that it has entered into a Farmout Agreement with Coastal Petroleum Co. for the acquisition of four highly graded Lodgepole Reef Oil Prospects located in Slope County, North Dakota.

Oil for America entered into an agreement to acquire leases for the land where the Slope County prospects are located in January of 2004, giving the lessor an overriding royalty interest of 20%, and those leases were later assigned to Coastal Petroleum Co. The terms of the Farmout Agreement between Western Standard and Coastal Petroleum calls for the leases to be assigned to Western Standard and a back in working interest to Coastal Petroleum of 20% after payout. The leases cover all rights below the Tyler formation, including the Lodgepole formation, with an 80% net revenue interest to Western Standard.

Bob Angerer, Vice-President of Coastal Petroleum, said: Each of the prospects has been identified and high graded using our proprietary technologies. As with the prospects Western Standard has previously acquired, their signatures match wells that have produced more than 4,000,000 barrels of crude oil each, and these prospects should have that potential as well. We are excited to be working with Western Standard.

Dan Bauer, CEO of Western Standard Energy, states: "Following on the recent gas discovery with Coastal Petroleum in Valley County, Montana, as a result we will move forward and expand our partnership."

Each lease has been previously identified and high-graded using proprietary technology by Oil for America, LLC. Oil for America, LLC is a leading edge technology company dedicated to reducing America's foreign energy dependence by identifying high probability domestic hydrocarbon prospects using proprietary technology.

Shareholders are invited to contact corporate communications toll free at (888) 956-7843 for further information and visit the company website at www.western-standard.com for further information.

About Western Standard Energy Corp.

Western Standard Energy Corp. is a publicly traded independent oil and gas exploration company with offices in Williston, ND. Currently, Western Standard has a Farmout Agreement with Coastal Petroleum Company, for leases on approximately forty-two thousand (42,000) acres in Valley County Shallow Gas Assembly in the state of Montana. The first test well on the Starbuck East Prospect has been successfully drilled to target depth with multiple potentially productive pay zones discovered. Western Standard aims to secure and develop a portfolio of oil and gas properties throughout the Central and Western United States of America. Pursuant to this business plan Western Standard has signed an MOI with Oil for America to acquire 2 leases in the Lodgepole Reef Prospect in Stark County, North Dakota. Western Standard Energy Corp. is a publicly traded company and trades on the NASD OTC BB under the ticker symbol: WSEG.

Western Standard Energy Corp.

Dan Bauer, President

North Dakota Industrial Commission, Department of Mineral Resources, Oil and Gas Division Website

Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include that we hope that the Starbucks Prospect will demonstrate similar characteristics to successful wells in the region, the Company's belief that we can participate in the exploration of those properties; the future development potential of our license in the Valley County Montana Project, that we hope to secure and develop a portfolio of oil and gas properties throughout the Central and Western United States of America; and that we intend on drilling our first test well in the immediate future to begin the process of proving out the prospect. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, and the likelihood that no commercial quantities of gas are found or recoverable. Additional information on risks for the Company can be found in filings on Edgar of other junior oil and gas exploration companies with the US Securities and Exchange Commission.


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