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Black Gold Gas & Oil Acknowledges Unusual Trading Activity, States No Specific Explanation

Posted on: Tuesday, 6 December 2005, 15:00 CST

Black Gold Gas & Oil, Inc. (OTC:BKGD) acknowledged recent unusual trading activity, high volume, and the increased price movement of its stock. Management has no specific explanation for the erratic activity in the volume or the stock price. The Company is in a developmental stage and currently has no revenues from operations. To the extent that the activity is related to the Company's prior press releases, management would like to advise of the following:

ACQUISITION OF CRISTAL S.A. The Company acquired CRISTAL S.A., an Argentinean company (which prior to the closing was changed from CRISTAL S.R.L.), from Asset Utilization Services, LLC, a Nevada limited liability company that is affiliated with A. Jay Bond, currently the Company's sole director. The purchase price was 50,000,000 shares of the Company's common stock. In a simultaneous transaction, Asset Utilization Services, LLC acquired CRISTAL S.A. from an unaffiliated third party, for a $3.5 million promissory note, a $50,000 cash payment, and 20,000,000 shares of the 50,000,000 shares paid to it by the Company for the acquisition. As a result of these transactions CRISTAL S.A. is now a wholly owned subsidiary of Company.

CRISTAL S.A. owns approximately 130,000 hectares of land of which 22,000 hectares have been valued at $265,000,000 by the Argentinean National Institute of Agricultural Technology. The principals of CRISTAL S.A. prior to closing supplied the valuation, and the Company has not independently verified this valuation at the present time. The Argentinean Government requires that certain standards and prerequisites be satisfied before an area can be harvested, including, without limitation, the building of roads, water facilities, and housing for the harvesters. In order to comply with these requirements, the Company estimates that it will need approximately $1.5 million for each additional 22,000 hectares to be harvested. The first 22,000 hectares are reported by CRISTAL S.A. to have met the governmental requirements and are immediately available for harvesting. The Company has entered into discussions with several timber companies to begin contracting for the cutting and harvesting of the first 22,000 hectares of timberland.

FOSTER OIL AND GAS PROJECT. Black Gold Gas & Oil, Inc. previously issued a press release with regard to agreeing to enter into an agreement with Foster Oil and Gas to acquire approximately 8,000 acres in the Cherokee basin of Southeastern Kansas, which would include all production, all oil and gas properties, and related mineral rights. Originally, Foster Oil and Gas held the rights to acquire the property from Jones & Buck Development (Sedan, Kansas). Foster Oil and Gas has relinquished those rights. The Company is now in negotiations with Jones & Buck Development for the acquisition of the property. The Company anticipates that the acquisition will cost approximately $4.5 million payable in cash, stock or a combination of cash and stock. To date, no binding agreement or letter of intent has been entered into and the terms and conditions have not been finalized.

Prior Release. In its previous press releases, the Company stated in error in the Forward Looking Statements section that certain risk factors relating to the Company were detailed in the Company's Securities and Exchange Commission filings. The Company does not file reports with the Securities and Exchange Commission.

Forward Looking Statements: This press release may contain forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current expectations of the management of Black Gold Gas & Oil, Inc. only and are subject to a number of factors and uncertainties that could cause or contribute to such differences including, but not limited to, economic downturns affecting the operation of the Company, the need for adequate financing to achieve the new strategic plans and to implement and complete management's overall plans and objectives, future revenue, the costs associated with the harvesting of the timber and other matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Actual results may differ materially from those contained in the forward-looking statements in this press release. Black Gold Gas & Oil, Inc. undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Source: Business Wire

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