News | January 18, 2008

Heartland Oil And Gas Continues Well And Pipeline Expansion Projects In Texas And Kansas

Houston, TX - Heartland Oil and Gas Corp. continues its aggressive drilling and pipeline expansion projects in Eastern Kansas and has completed the planning and testing necessary to undertake production enhancement projects on several of its wells in Northern Texas.

In Southeast Kansas, Heartland is presently working to connect 12 additional wells in its Jake pilot location. The work entails perforating and fracturing the wells, drilling an injection well to dewater the producing wells and build 4.5 miles of 8 inch pipeline that will connect Jake to Heartland's Lancaster gas processing plant. This will add another 12 wells to the 26 wells that are already connected.

The Second project in Southeast Kansas is a result of the successful development of a new two stage fracturing technique that has produced impressive results when applied to several of Heartland's recently drilled wells. The new fracturing technique will now be applied to the original 16 new wells. This is a very inexpensive way to substantially increase production from those wells.

In North Texas, Heartland has undertaken recompletion work on 10 wells in Jack County in zones that have not been previously produced but which new testing logs prepared by Schlumberger and analyzed by Heartland engineers showed substantial gas in place behind pipe. The tubing in some of the wells has been pulled and fracturing procedures have been designed. Upon completion of these procedures, which are scheduled to be commenced in the coming few days, a very positive impact on Heartland's oil and gas production is expected.

In Palo Pinto County, Texas, Heartland will be working to bring the Barron #2, the Barron #3, the Barron #6, the Barron #9 and the Keck #1, in addition to the already producing Barron #5, into production from the Barnett Shale zones into which they were drilled and many were previously fractured. Producing these zones will require Heartland to drill a salt water injection well or acquire a non-producing well to convert to an injection well in order to dispose of the additional water expected to be generated from the Barnett Shale zones.

Heartland's goal is to accomplish all of these projects by the end of the 1st Quarter of 2008. Going forward, Heartland's focus will be to drill 30 new wells in Kansas every quarter based on the gas in place maps prepared by its engineers and geologists.

In a continuing effort to build shareholder value, the management of Heartland is working diligently to increase the production and reserves of the company and is developing a comprehensive plan for all Heartland assets in North Texas and Southeast Kansas as well as the 700,000 acres under lease in North Kansas.

SOURCE: Heartland Oil and Gas Corp.