Western Standard Energy Enters Into Farmout Agreement With Coastal Petroleum For Oil Prospects In North Dakota

Williston, ND - Western Standard Energy Corp., 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.

SOURCE: Western Standard Energy Corp.