Petrol Oil & Gas, Inc. [OTCBB: POIG] Coalbed Methane Production

Petrol Oil and Gas Adds New Gas Processing Plant into Its Neodesha Pipeline to Support Gas Sales; Stakes Well Locations for Three Well Drilling Program on Petrol-Neodesha

August 31 , 2005

Petrol Oil and Gas, Inc. (OTCBB:POIG) announced today that it has incorporated a new gas processing unit into its newly enhanced Neodesha pipeline system to support growing gas sales from its Petrol-Neodesha property in Kansas. The Company also announced today that it will commence a three well drilling program on the property in September.

"We finalized the installation of a gas processing plant on our newly enhanced Neodesha pipeline system in order to assure Petrol sells high quality gas to its customers," said Paul Branagan, Petrol's Chief Executive Officer. "Further, we just staked three new well locations from our recently filed drilling intents and expect to commence drilling in September. With the strong market demand for natural gas we are concentrating our field efforts on increasing our current production levels from Petrol-Neodesha."

According to a December 31, 2004 Reserve Report, Petrol has gross Proved Reserves amounting to about 9.9 Billion cubic feet (BCF) within its Petrol-Neodesha properties. Petrol-Neodesha, located in the Thayer field, is a very active CBM gas producing area and lies within Wilson and Neosho counties, Kansas. Petrol currently produces natural gas from its 77 producing wells in Petrol-Neodesha.

Ed Lewis, 212-732-4300 x 225