PACO Oil & Gas Inc. to Bring Olsen Lease Wells Up to Full Production

PACO Oil & Gas Inc. to Bring Olsen Lease Wells Up to Full Production

SHERMAN, TX–(EMWNews – August 25, 2008) – PACO Oil & Gas Inc. (PINKSHEETS: POGC)

(FRANKFURT: 4IP) have acquired the necessary permits to operate an

injection well located on the Olsen lease properties. There are 6 wells

being re-worked on the 105 acre, Washington, Oklahoma properties. The

injection well will pump water into the well formations that will help

increase production flow rates on all 6 of the wells being re-worked. PACO

Oil & Gas Inc. has begun preliminary production on 2 remaining wells on the

Olsen lease acreage and will begin re-completion of the additional wells

after the evaluations are complete.

About PACO Oil & Gas Inc.

PACO Oil & Gas Inc. is an exploration company focused on purchasing

undervalued oil and gas leases with little or no production in the United

States. Its experienced technical team then increases the lease’s

production thereby significantly increasing the value.

PACO Oil & Gas concentrates its efforts developing undervalued well

communities into micro scale production facilities. These working assets

have all been refurbished and outfitted with the latest in oil recovery

equipment. Since many of these assets are shallow wells, former owners were

technically unable to reach deeper deposits. PACO has the technical team to

go further and more efficiently.

Forward-Looking Statements

Statements in this press release relating to plans, strategies, economic

performance and trends, projections of results of specific activities or

investments, and other statements that are not descriptions of historical

facts may be forward-looking statements within the meaning of the Private

Securities Litigation Reform Act of 1995, Section 27A of the Securities Act

of 1933 and Section 21E of the Securities Exchange Act of 1934.

Forward-looking information is inherently subject to risks and

uncertainties, and actual results could differ materially from those

currently anticipated due to a number of factors, which include but are not

limited to, risk factors inherent in doing business. Forward-looking

statements may be identified by terms such as “may,” “will,” “should,”

“could,” “expects,” “plans,” “intends,” “anticipates,” “believes,”

“estimates,” “predicts,” “forecasts,” “potential,” or “continue,” or

similar terms or the negative of these terms. Although we believe that the

expectations reflected in the

forward-looking statements are reasonable, we cannot guarantee future

results, levels of activity, performance or achievements. The company has

no obligation to update these forward-looking statements.