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Small Cap Strategies Announces Signed Letter of Intent to Acquire the Assets of Xtreme Oil & Gas, Inc.

Posted on: Tuesday, 7 October 2008, 09:00 CDT

Small Cap Strategies, Inc. (the "Company", SMCA.OB) announced today the execution of a Letter of Intent to acquire, in the next 30 days, the assets of Xtreme Oil & Gas, Inc. ("Xtreme", XTOG.PK) including five oil and gas properties representing approximately 2,400 acres in Texas and Oklahoma. Also included in the transaction were the two licensed and bonded Operators owned by Xtreme which would permit the Company to control and manage operations of the wells now situated on the properties. The Company has previously announced its intent to shift its primary business focus to the oil and gas industry and this acquisition is a further step in that direction.

The properties being acquired include both existing wellbores that were acquired by Xtreme for redevelopment and approximately six wells currently producing approximately 75 barrels per day. The properties include more that 75 existing wellbores that can be redeveloped and returned to production. Many of the existing wells include multiple pay zones, some of which have not been previously exploited. The business model of Xtreme has been to acquire these older properties and apply modern recovery techniques and managed costs to maximize production at the lowest cost.

"We believe that the economics of the oil and gas industry justify shifting the focus of the Company to this industry and look forward to working with the folks at Xtreme," commented Bryce Knight, CEO of the Company.

"Working with a public company like Small Cap Strategies, Inc. will allow us to obtain the capital to exploit the properties that we have acquired over the past year and a half," added Will McAndrew, CEO of Xtreme who will, with board approval, take over management of the Company.

About Small Cap Strategies, Inc.

Small Cap Strategies, Inc. is a business development company which has elected to be governed under the Investment Company Act of 1940. Management of BDC's is vested in its board of directors, a majority of whom are qualified as disinterested. The Company reports pursuant to the Securities Exchange Act of 1934 and conforms to sections 55 through 64 of the Investment Company Act of 1940 which govern its investments primarily in small companies who are not fully reporting public companies or are entering into or emerging from bankruptcies; investments that are not available to other publicly-traded investment companies with the additional requirement that BDC's provide managerial expertise to their portfolio companies in which they make investments.

About Xtreme Oil & Gas, Inc.

Xtreme Oil & Gas, Inc., headquarters in Dallas, Texas, is an independent oil and gas exploration and production company which either obtains producing wells with the expectation of rehabbing the wells in an effort to increase production or drill new wells in the hope of obtaining oil and gas production in commercial quantities. For more information on Xtreme, please go to www.xtremeoilandgas.com.

Forward Looking Statements

Certain statements in this announcement regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production such as "may,""potentially,""expects," and similar terms may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, further testing and analysis, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Xtreme to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. Xtreme undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.

Source: Business Wire

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