Stetson Oil & Gas has completed its previously announced acquisition of 100% of the issued and outstanding common shares of Rhea Resources Inc.

Pursuant to the Acquisition, shareholders of Rhea Resources (Rhea) received 0.7 common shares of Stetson in exchange for each common share held of Rhea. Accordingly, Stetson issued an aggregate of 21,766,497 Stetson Shares valued at $0.10 per share to the Rhea Shareholders, pursuant to which, Rhea Shareholders hold approximately 20.25% of the combined company.

Rhea's assets consist of producing oil and gas properties located in the Lashburn and Buzzard areas of west central Saskatchewan. The main productive zone is the Sparky formation, which produces 12 degree API oil from a depth of 575 meters. Rhea has working interests ranging from 5.0% to 83.33% (with an average of 28.5%) in 18 producing oil wells. Rhea is the operator of four producing oil wells. Stetson has identified one workover candidate and one development drilling opportunity on Rhea owned lands.

The Acquisition will increase production, reserves and cash flow to augment Stetson's growth plan, adding critical mass and increasing momentum going forward as Stetson moves toward the drilling phase of its operations in North Dakota. Through the Acquisition, Stetson will add daily production of approximately 100 bopd, bringing total Company production to approximately 135 boepd.

Tags: Stetson Oil & Gas Ltd.