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Leland Energy discovers a major new oil well producing 1000 bpd

HENDERSON, Nevada -- Leland Energy Inc., through its subsidiary Leland Tennessee Holdings, Inc., is pleased to announce the commercial success of its H. Johnson well #6L in Pickett County, Tennessee. The well, drilled into the Stones River formation is the last of 5 wells in the first phase of its development program in Pickett County, Tennessee.

The H. Johnson #6L permitted and being drilled by Rick-Rod Oil Company, was drilled into the Stones River formation at 3:30pm EST on September 18 th. The well started blowing light gas with a very heavy oil "mist" and turned quickly to oil, delivering over 1000 bbl in the first 24 hours. "It' s been on free flow for just 24 hours thus far and seems to be holding pretty strong," said Stephen M. Thompson, President of Leland Energy. He added, "This, along with 7 older wells that we' re re-working on this portion of our lease holdings, seem to confirm our strong belief in Pickett County, particularly the Moodyville Quadrangle area."

Phase I of its development program called for the re-work and treatment of these 7 old wells and the drilling of 5 new locations. All wells thus far are commercial producers. Phase II and Phase III are on schedule to develop surrounding acreage.

"We' re obviously pleased for our company and all our Partners on the initial success of this well," said Mr. Thompson. "We' ll continue to drill promising locations and strive to meet our daily production goals from the 19 old and 17 new wells that are part of our 3 Phase Development program." The drilling supervision, site management and operations are being handled by B & J Petroleum out of Glasgow, Kentucky.




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