October 28, 2008

Stetson Partners With Red Willow in North Dakota Bakken Prospect

STETSON OIL & GAS LTD. ("Stetson") (TSX VENTURE: SSN) is pleased to announce that it has signed letter agreements with Red Willow Great Plains, LLC ("Red Willow") that provide for joint ownership and development of oil and gas mineral rights on lands situated on the Fort Berthold Reservation in North Dakota.

Red Willow Great Plains, LLC is a wholly owned business enterprise of the Southern Ute Indian Tribe. Red Willow currently has net daily oil and gas production of approximately 29,000 boepd. In addition to substantial natural resources on their own reservation lands, the Southern Ute Indian Tribe has significant commercial enterprises in oil and gas off the Reservation, gas gathering and treating, real estate, sand and gravel, alternative energy, and private equity investments in a number of additional industries.

Stetson has agreed to assign 50% of its interest in oil and gas mineral rights covering 12,696 acres of Allotment Lands to Red Willow. In consideration, Red Willow will pay for 50% of the costs incurred in relation to purchasing these lands, and will farm-in and cover the first US$3,500,000 of Stetson's share of drilling, completing and equipping costs on well(s) drilled on jointly owned lands. Stetson will be the initial Operator of the Allotment Lands. Red Willow has agreed to repay Stetson its share of the costs incurred in connection with purchasing the Allotment Lands within 15 days of receipt of all necessary approvals.

Stetson has also agreed to assign 60% of its interests in oil and gas mineral rights on 8,185 acres of Tribal Lands to Red Willow. Red Willow will pay for 60% of the costs incurred in relation to purchasing these lands, and will also be required to share in the obligations of the Tribal Lands, which includes, among other things, the commitment to drill three wells during the initial term of the leases. Stetson and Red Willow have received consent and approval for the assignment of the Tribal Lands from the Tribal Business Council of the Three Affiliated Tribes and have also made the requisite payment for the leases to the Bureau of Indian Affairs. Red Willow will be the initial Operator of the Tribal Lands.

Stetson and Red Willow intend to commence shortly planning for joint drilling operations on the lands. The assignment of the interest in the Allotment Lands and the Tribal Lands is subject to approval of the TSX Venture Exchange.

Stetson is an emerging junior oil and gas company with exploration, development, and production programs in the Provinces of Saskatchewan and Alberta, Canada and North Dakota, U.S.A.

Cautionary Note Regarding Forward-Looking Information: This press release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the terms of the proposed transaction; potential for oil and gas on the leases; the Company's ability to attract financing on acceptable terms; timing and cost of development plans and actual development; production forecasts; receipt of regulatory approval; benefits of the transaction; impact of technology; and future financial or operating performance of the Company and its projects. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social risks and uncertainties; risks relating to oil and gas exploration and exploitation activities; reliance on technology; and delays in obtaining regulatory approvals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.


 Contacts: Stetson Oil & Gas Ltd. Bill Ward President & CEO (403) 531-1700 or Direct: (403) 531-1711 (403) 531-1719 (FAX) Email: [email protected] Website: www.stetsonoilandgas.com

SOURCE: Stetson Oil & Gas Ltd.