Don’t completely give up on oil just yet Iran oil premium shrinks, but WTI prices may touch a floor at $85

By Myra P. Saefong, MarketWatch

SAN FRANCISCO (MarketWatch) — Crude-oil futures have lost nearly 12% so far this month, putting a dent in the confidence of even the most bullish of investors and analysts, but there are still some potential price-lifting factors for oil lurking in the backdrop.

On Thursday, oil for June delivery (NMN:CLM2) settled at $92.56 a barrel, down 25 cents for its 11th loss in 12 sessions. Month to date, futures prices have dropped over $12.

“Prices have trended down this past month as the realization has increasingly taken hold that the underlying market fundamentals have changed,” said Matthew Parry, a senior oil-market analyst at the International Energy Agency. After 10-consecutive quarters of global demand exceeding supplies, from the third quarter of 2009 to the fourth quarter of 2011, “the market flipped into surplus territory.”

So this past month, the market “took a step back and refocused on the actual fundamentals now, rather than some possibility of future supply disruptions,” he said.

Crude futures prices saw a peak settlement price of nearly $110 a barrel in late February, on mounting fears that Iran might stop oil exports to some European nations following a European Union decision to impose an oil embargo on the oil producer, which officially begins July 1.

“Saddled with a fresh round of sanctions aimed at undermining the payments system for its crude-oil exports, Iran repeatedly threatened to block the Strait of Hormuz, the waterway that acts as a choke point for crude coming out of the [Persian] Gulf,” said Bob van der Valk, a petroleum-industry analyst based in Terry, Mont. Almost 20% of oil traded worldwide goes is shipped through the strait.

That led to fears of a shortage in world markets and a “war premium” of $30 a barrel, he said.

Market concerns have now eased with “recent positive talks” between the Western powers and Iran to review the Middle Eastern nation’s nuclear program, he said.

Talks between Iran and the International Atomic Energy Agency (IAEA), the United Nation’s nuclear watchdog, have shown progress, with an Iranian official saying that discussions this past week were “fruitful,” according to a BBC News report published Tuesday. Talks were to continue next week.

But Iran’s not the only reason oil prices have dropped.

“While the dissolution of the Iran oil premium has played a role in the price drop of oil over the last few months, last week’s drop has to be mainly attributed to Greece,” said Will McAndrew, chief executive officer of Xtreme Oil & Gas Inc. (OBB:XTOG).

Last Friday, oil prices closed at their lowest level of the year, down more than 2% for the week on concerns over slowing global demand as political issues in Greece strengthened the U.S. dollar.

Finding a floor

But some analysts say that the effect of an apparent easing of Iranian tensions on oil prices has a limit, even as Europe takes center stage.

“Oil prices seem unlikely to drop sharply without resolution to the conflict over Iran’s nuclear program, or a significant build-up in inventories,” said Michael Lynch, president of Strategic Energy & Economic Research.

“Neither is likely this summer, but could happen by year’s end,” he said, adding that the recent drop in oil prices still leaves shale oil producers with “extremely healthy profits.”

The floor on oil prices, meanwhile, may not be too far below the current levels.

“If the upcoming meeting with Iran goes ‘well’, I wouldn’t be surprised to see us test $85” for West Texas Intermediate crude and $100 for Brent crude, Lynch said. Otherwise, prices won’t likely go below $90 for WTI and $105 for Brent.

Brent crude (IET:UK:LCON2) trades at around $107 per barrel.

For WTI, a $90 price isn’t so bad when put in context. Prices consistently traded below that level from October 2008, until around March 2011, according to data from FactSet Research.

Right now, “Iran is simmering, not boiling,” said McAndrew. But “with EU sanctions about to take effect, Iran will have less oil exports and less money, assuming that its existing trading partners will not be able to absorb all of Iran’s excess oil production.”

“When that happens, Iran may start to act a bit more desperately, which will have the effect of bringing back the Iran oil premium,” he said.

Then again, maybe the Iran oil premium still exists.

If the risks to supply chain disruption in the Middle East were to be resolved, oil prices could see a further decline of $10 to $15, but those risks have not been resolved, said Rick Scott, senior managing director of L&S Advisors Inc.

“The ‘Iran oil premium’ is still reflected in the prices of both WTI and Brent,” he said.

And as long as WTI stays above $75 and Brent remains above $90, the market is in what Scott refers to as a “sweet spot.”

“At those levels, profits are maximized for oil companies, as the lower price level spurs increased demand and higher volume,” he said.

Drill count

Whatever the case, don’t expect the drop in U.S. oil prices to slow domestic production levels.

“The drop in oil prices will have very little impact on oil drilling,” said McAndrew.

He said land-based wells produce oil at around $25 a barrel, while offshore drilling produces at around $50 a barrel.

“Producing oil is profitable at $80 a barrel or $100 a barrel — it doesn’t matter,” he said.

Still, WTI prices below $80 “would pressure U.S. oil field economics in certain onshore basins and result in a decline in oil-directed rig count,” said Eric Gordon, equity research analyst at Brown Advisory.

“Therefore, we maintain a relatively cautious view on the sector today,” he said.

The number of U.S. rigs actively drilling for oil reached 1,372 on May 11, according to Baker Hughes Inc.’s (NYSE:BHI) latest rig count, out of a total 1,974 active U.S. rigs.

That the highest rig count for oil since Baker Hughes started keeping separate oil and gas rig counts in 1987, said James Williams, energy economist at WTRG Economics, though he also said the oil rig count would have been much higher in 1981 if it published the statistics separately back then.

Since 1940, the highest active U.S. rig count was 4,530, recorded in December 1981, according to Baker Hughes.

Oil drilling will most likely increase for the next 12-18 months, said McAndrew.

Falling together

For now, the reasons for WTI’s drop are sensible — and so is Brent’s slight lag to catch up with the declines in prices for the U.S. oil benchmark.

“Not only has WTI has been pressured lower by a triumvirate of weak U.S. economic data, a slowing Chinese economy and a worsening European debt crisis, but increasing domestic production … has pushed [U.S.] oil inventories to a 22-year high, with eight-consecutive weekly builds,” said Matt Smith, a commodity analyst at Summit Energy.

U.S. crude supplies stood at 381.6 million barrels for the week ended May 11, their highest level since 1990, with inventories at Cushing, Okla., a trading hub for oil, at a record 45.1 million barrels that week, according to data from the Energy Information Administration.

The ongoing supply glut at Cushing continues to mean that WTI lags Brent prices, he said, regardless of the reversal of the planned Seaway pipeline, which would deliver oil from Cushing into the Houston area.

“Unlike WTI, Brent is still trading above the $100-a-barrel mark, but slackening demand is driving down prices in Europe as well,” said petroleum-industry analyst Van der Valk.

Brent’s down about 10% month to date.

A stronger U.S. dollar in the face of euro weakness has also helped steepen the price descent for WTI oil, which is traded in dollars.

“If euroland flounders, then oil will trade in a lower range, while the markets stick to the dollar and wait for politicians to sort out the mess,” said Byron King, editor of investment newsletter Outstanding Investments.

The euro (ICAPC:EURUSD) trades near the year’s lowest level and the dollar index (NYE:DXY) marked a 14-session advance on Thursday.

“If European and U.S. economies get weaker, oil prices should continue to decline,” said WTRG’s Williams. “However, we still face the possibility of supply interruptions in several major exporting countries.”

“On the short list are Iran, Venezuela, Libya and Iraq,” he said. “A halt in exports from any of these countries could send oil prices to new highs.”

Xtreme Exceeds 1,000 Barrels of Daily Saltwater Disposal

Successfully Achieves Phase 1 Target

PLANO, TX–(Marketwire - May 15, 2012) - Xtreme Oil & Gas, Inc. (OTCQB: XTOG) (OTCBB: XTOG), an independent energy company engaged in the exploration, development, and production of crude oil and natural gas, is pleased to announce that the Company’s saltwater disposal well has achieved its initial goal of processing greater than 1,000 barrels of saltwater per day. Xtreme expects to increase its disposal rate incrementally until the facility achieves its target disposal level of 15,000 barrels per day.

This well was successfully drilled into the very porous Arbuckle formation and is capable of safely disposing more than 150,000,000 barrels of saltwater over its 25 year expected lifetime. The Company earns disposal fees as well as generates revenue from oil sales by recovering the approximate 1% to 3% of remaining oil left in each disposed barrel.

“Management is extremely pleased with the rapid acceptance of our saltwater disposal well services by the regional water hauling companies,” stated Mr. Willard McAndrew, CEO of Xtreme. “Our seamless design allows for trucks to enter and dispose of their saltwater in less than ten minutes. Fast turnaround times allow for our customers to return multiple times in a day thus improving the economics for all involved. Xtreme Oil & Gas is proud to be one of only a handful of publicly listed saltwater disposal companies. Our dual revenue stream of saltwater disposal in Oklahoma and petroleum recovery at our Texas and Kansas properties, positions us to increase earnings, expand margins, and enhance shareholder value in 2012.”

About Xtreme Oil & Gas
Xtreme Oil & Gas, Inc. is a rapidly growing Dallas-based independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas with operations from properties it owns in Texas, Oklahoma, and Kansas. The company’s oilfield services disposes of saltwater for independent energy producers.

Forward-Looking Statements
Statements included in this release related to Xtreme Oil & Gas, Inc. constitute or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the inherent uncertainty of finding and developing oil and gas properties, the technological and financial difficulties inherent in these activities, the price of hydrocarbons and the Company’s ability to estimate accurately net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company’s financial results can be found in the Company’s reports filed with the Securities and Exchange Commission.

Contact Information

Contact:

Company
Xtreme Oil & Gas, Inc.
(214) 432-8002
www.xtoginc.com

Xtreme Oil & Gas Announces Completion of Saltwater Disposal Well

PLANO, TX–(Marketwire - Apr 3, 2012) - Xtreme Oil & Gas, Inc. (OTCQB: XTOG) (OTCBB: XTOG), an independent energy company engaged in the exploration, development, and production of crude oil and natural gas, is pleased to announce the completion of the Company’s saltwater disposal well and facility. Xtreme Oil & Gas will now begin service on its recently secured Letters of Intent that allows for the disposal of up to 15,000 barrels of saltwater per day.

The well has been successfully drilled to 6,500 feet into the Arbuckle formation in Oklahoma. Due to the porous nature of the formation, it is capable of safely and effectively absorbing over 150,000,000 barrels of saltwater. In addition to receiving disposal fees the company will skim the remaining oil off of each barrel of water generating significant revenue from oil sales as part of this project.

“Management is extremely pleased with the completion of our high margin, Saltwater Disposal Well and optimistic about the additional revenue that the company will gain from this business,” stated Mr. Willard McAndrew, CEO of Xtreme Oil and Gas. “Xtreme Oil & Gas is proud to be known as one of the only publicly listed saltwater disposal company in the United States that also derives revenue from oil and gas production. Our dual revenue stream of saltwater disposal and petroleum recovery generated by the disposal facility complements our anticipated increase in oil and gas production at our West Thrifty and KansasWell sites. The combination of these business lines coupled with numerous opportunities, positions us to increase earnings, expand margins, and improve shareholder value in 2012.”

About Xtreme Oil & Gas
Xtreme Oil & Gas, Inc. is a rapidly growing Dallas-based independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas with operations from properties it owns in Texas, Oklahoma, and Kansas. The company’s oilfield services disposes of saltwater for independent energy producers.

Forward-Looking Statements
Statements included in this release related to Xtreme Oil & Gas, Inc. constitute or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the inherent uncertainty of finding and developing oil and gas properties, the technological and financial difficulties inherent in these activities, the price of hydrocarbons and the Company’s ability to estimate accurately net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company’s financial results can be found in the Company’s reports filed with the Securities and Exchange Commission.

Company Contact:

Xtreme Oil & Gas, Inc.
(214) 432-8002
www.xtoginc.com

Investor Contact:

Alliance Advisors, LLC
Alan Sheinwald, President & Founder
(914) 669-0222
ASheinwald@AllianceAdvisors.net
www.AllianceAdvisors.net

Xtreme Oil & Gas Announces 2011 Financial Results

PLANO, TX–(Marketwire - Apr 2, 2012) - Xtreme Oil & Gas, Inc. (OTCQB: XTOG) (OTCBB: XTOG), an independent energy company engaged in the exploration, development, and production of crude oil, today announced annual revenue of approximately $2.5 million, compared to approximately $90,000 for the fiscal year 2010. Operating profit for 2011 increased to approximately $649,000, compared to a loss of $7 million in 2010.

“During the previous year Xtreme Oil & Gas achieved numerous milestones,” stated Mr. Willard G. McAndrew III, CEO of Xtreme Oil & Gas, Inc. “We are pleased to have achieved an operating profit and excited to utilize these gains in fueling growth across both business lines. Management has successfully transitioned ourselves from a start-up to an emerging oil producing company with several profitable revenue streams. The Company has enhanced its market position via the recovery of both oil and natural gas from owned properties in Texas and Oklahoma. The successful extraction of resources from our owned properties is a direct result of management’s commitment to our proven drilling methods. These developments are extremely encouraging as Xtreme and its partners we will implement the same methodology at our Kansas property in the near-term.”

Mr. McAndrew III continued, “During 2011 we made investments to increase our production at our Texas and Oklahoma properties that will lead to continued growth in 2012. We also progressed in our high-margin saltwater disposal business and have recently completed construction of our saltwater disposal facility. We have received Letters of Intent to dispose up to 15,000 barrels of saltwater per day from AMEREX and Southern Wellhead. Management believes that this business line will provide an additional $7 million in revenue for each well when it reaches full volume. Recent oil production in Texas and Oklahoma combined with anticipated recovery in Kansas and growth of our salt water disposal business strongly positions us for increased earnings, improved margins, and enhanced shareholder value.”

Recent Operational Highlights

Twelve Month Financial Results for the period ended December 31, 2011

Revenue for the year ended December 31, 2011, was $2,493,873 compared to revenue of $89,835 for year ending 2010. The increase was primarily due to revenues realized from completing drilling on our saltwater disposal well and completing our Five Star project on the West Thrifty property in Texas.

Oil production expenses totaled $194,848 and $241,896 for the years ended December 31, 2011 and 2010, respectively. Loss on disposal of properties totaled $48,356 for the year ended December 31, 2011 and was directly related to our attempts to recover damages on the Lionheart property. We continued to operate the West Thrifty and Quita properties and invest in improving field operations to properly maintain and improve our production efficiency. Production costs exceeded revenues because of higher costs of maintenance and repairs.

General and administrative expenses totaled $1,722,180 for the year ended December 31, 2011, a decrease of approximately $4,700,000 from $6,443,746 for the year ended December 31, 2010. This decrease in general and administrative expenses in 2011 is largely driven by our reduced reliance on the issuance of common stock for consulting services and for employees.

For the year ending December 31, 2011, the company had net losses before tax of $325,088 compared with net losses of $7,079,703 for 2010. These losses were primarily due to stock based compensation charges, issuances of common stock for services, and non-cash charges for the issuance of convertible debt and warrants in September 2011. For the year ending December 31, 2011 our losses per share on a fully diluted basis was $0.01 compared to losses of $0.17 per share on a fully diluted basis for the year ending December 31, 2010.

The Company believes it is useful to consider this non-GAAP measure as it excludes significant onetime accounting charges related to the Notes and Warrants we issued during the third quarter.

About Xtreme Oil & Gas

Xtreme Oil & Gas, Inc. is a rapidly growing Dallas-based independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas with operations from properties it owns in Texas, Oklahoma, and Kansas. The company’s oilfield services disposes of saltwater for independent energy producers.

Forward-Looking Statements

Statements included in this release related to Xtreme Oil & Gas, Inc. constitute or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the inherent uncertainty of finding and developing oil and gas properties, the technological and financial difficulties inherent in these activities, the price of hydrocarbons and the Company’s ability to estimate accurately net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company’s financial results can be found in the Company’s reports filed with the Securities and Exchange Commission.

Company Contact:

Xtreme Oil & Gas, Inc.
(214) 432-8002
www.xtoginc.com

Investor Contact:

Alliance Advisors, LLC
Alan Sheinwald, President & Founder
(914) 669-0222
ASheinwald@AllianceAdvisors.net
www.AllianceAdvisors.net

Xtreme Oil and Gas Announces Commencement of Oil Production at the Company’s West Thrifty Property

PLANO, TX–(Marketwire - Mar 12, 2012) - Xtreme Oil & Gas, Inc. (OTCQB: XTOG) (OTCBB: XTOG), an independent energy company engaged in the exploration, development, and production of crude oil, is pleased to announce that the company has begun oil production at its 5 Star West Thrifty Texas property wells. The 1,200 acre site officially began production in the 1940’s with Hess and Conoco.

“Management is excited with the commencement of oil production at our 5 Star West Thrifty site,” stated Mr. Will McAndrew, CEO of Xtreme Oil & Gas. “With over 1,200 acres of land at the drill site, and previous production of over 8 million barrels of oil, we believe there is potential for significant oil production to continue throughout 2012 and beyond. Going forward, Xtreme Oil & Gas plans to implement these effective production and recovery methods throughout our entire portfolio of wells in Texas, Kansas and Oklahoma. We look forward to announcing the recovery of additional oil as we continue towards increasing our production in 2012. The Company is pleased to have hit our milestone of initial production by the end of February, and look forward to continuing our proven track record of success.”

Recently the company announced the water flood injection method employed at the West Thrifty Texas property successfully created pressure and fluid recovery in the production wells. This injects water back into a reservoir, increasing pressure and stimulating oil production. The injections of water come from strategically placed wells and pumps that wash the trapped oil out of the formation towards the producing wellbores. As with most other wells using the water flood injection technique, its effective demonstration at the West Thrifty well has proven a precursor to successful oil production. Xtreme Oil and Gas has resolved to move forward with this technique as a result of its proven efficacy.

About Xtreme Oil & Gas
Xtreme Oil & Gas, Inc. is a rapidly growing Dallas-based independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas with operations from properties it owns in Texas, Oklahoma, and Kansas. The company’s oilfield services disposes of saltwater for independent energy producers.

Forward-Looking Statements
Statements included in this release related to Xtreme Oil & Gas, Inc. constitute or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the inherent uncertainty of finding and developing oil and gas properties, the technological and financial difficulties inherent in these activities, the price of hydrocarbons and the Company’s ability to estimate accurately net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company’s financial results can be found in the Company’s reports filed with the Securities and Exchange Commission.

Company Contact:

Xtreme Oil & Gas, Inc.
(214) 432-8002
www.xtoginc.com

Investor Contact:

Alliance Advisors, LLC
Alan Sheinwald, President & Founder
(914) 669-0222
ASheinwald@AllianceAdvisors.net
www.AllianceAdvisors.net

Xtreme Oil & Gas Announces Key Additions to the Board of Directors

PLANO, TX–(Marketwire - Feb 27, 2012) - Xtreme Oil & Gas, Inc. (OTCQB: XTOG) (OTCBB: XTOG), an independent energy company engaged in the exploration, development, and production of crude oil, is pleased to announce the appointment of Ret. Rear Admiral Ed Allen, and Mr. E. L. Shockey to the company’s Board of Directors.

“These additions to our Board of Directors provide significant human capital and numerous strategic benefits to our company as a whole,” stated Mr. Willard McAndrew, CEO of Xtreme Oil & Gas. “The new Board members possess a diverse mixture of strategic industry relationships, and proven leadership abilities that will assist us in expanding our market presence in the oil and gas industry. The Board now has the knowledge and experience to provide invaluable counsel and guidance to our management team in targeting key areas for profitable oil recovery and securing new contracts within our saltwater disposal business.”

Ret. Rear Admiral Ed Allen honorably served the United States Navy for 30 years, achieving the rank of Rear Admiral. Over the course of his career he led six operational commands before being appointed to the Joint Chiefs of Staff. He was awarded the United States Navy League John Paul Jones Award for Inspirational Leadership and the Tailhooker of the Year Award. Following his service, Rear Admiral Allen joined Oracle Corporation, as Vice President of Business Development. While in this role he focused on e-Business solutions for Department of Defense Agencies and was responsible for Oracle’s Leadership and Executive Coaching initiative. Following his tenure with Oracle, he became an executive coach and business consultant serving in the School of Management at the University of Texas at Dallas in its Executive Management and Coaching program. He also serves as Vice Chairman of the Board and Regional Director for Cherry Financial Partners, Inc.

Mr. E. L. Shockey is a former United States Navy service member with an extensive background in software development. Mr. Shockey then became involved in the software and telephony industries at GE, RCA, Raytheon, and Northern Telecom. He founded Computerware in 1978 and successfully developed and marketed a telephone company management system for shared tenant services. Computerware was bought by a venture capital fund in 1986. Mr. Shockey then founded Telecommunications Support Systems (TSS) to dispatch substitute teachers for schools. Its customers included 600 of the largest school districts in the U.S. and Canada. TSS was sold in 2000 and currently operates as eSchools Solutions, Inc.

Concurrent with the appointment of additional Board members, Xtreme Oil & Gas has made significant strides to better position the Company for future growth and business execution.

Recently, the Company announced oil and gas recovery from two well sites at their Oklahoma property, and successful water flood operations from its West Thrifty, Texas location, a known precursor to oil production. Xtreme also began drilling at its 8,500 acre property in Kansas and expects positive results in the near term. Additionally, the Company has begun disposal operations on its first saltwater disposal well, an endeavor which is expected to generate up to $7 million in annual revenue.

About Xtreme Oil & Gas

Xtreme Oil & Gas, Inc. is a rapidly growing Dallas-based independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas with operations from properties it owns in Texas, Oklahoma, and Kansas. The company’s oilfield services disposes of saltwater for independent energy producers.

Forward-Looking Statements

Statements included in this release related to Xtreme Oil & Gas, Inc. constitute or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the inherent uncertainty of finding and developing oil and gas properties, the technological and financial difficulties inherent in these activities, the price of hydrocarbons and the Company’s ability to estimate accurately net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company’s financial results can be found in the Company’s reports filed with the Securities and Exchange Commission.

Company Contact:

Xtreme Oil & Gas, Inc.
(214) 432-8002
www.xtoginc.com

Investor Contact:

Alliance Advisors, LLC
Alan Sheinwald, President & Founder
(914) 669-0222
ASheinwald@AllianceAdvisors.net
www.AllianceAdvisors.net

Xtreme Oil & Gas Announces Hancock Well Oil Production

PLANO, TX–(Marketwire - Feb 21, 2012) - Xtreme Oil & Gas, Inc. (OTCQB: XTOG) (OTCBB: XTOG), an independent energy company engaged in the exploration, development, and production of crude oil, announced today that the company has begun oil production from their Hancock Well site in Oklahoma. The Hancock well has produced 20,000 barrels of oil, and is continuing output at 150 barrels per day. Additionally, the well has produced 60,000 mcf of gas at a rate of 700 mcf per day.

“Xtreme is extremely pleased to announce the significant production of oil and gas from our Hancock well in Oklahoma,” stated Willard G. McAndrew, CEO of Xtreme Oil & Gas. “In addition to providing validation of our successful drilling techniques, the results offer encouragement for similar production amongst our nearby Robinson location. We are currently performing drilling operations across three states. Management is confident that we will experience similar results throughout our portfolio of wells in Oklahoma and Kansas as we ramp production during 2012. We are pleased to begin generating strong returns for our investors.”

Hancock is located in the Sooner trend in the Anadarko Basin and is drilled to the Hunton formation. The site recently underwent a state of the art 16 stage fracking operation to expand the wellbore’s reach into the oil and gas formation.

About Xtreme Oil & Gas
Xtreme Oil & Gas, Inc. is a rapidly growing Texas-based independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas with operations from properties it owns in Texas, Oklahoma, and Kansas. The company’s oilfield services disposes of saltwater for independent energy producers.

Forward-Looking Statements
Statements included in this release related to Xtreme Oil & Gas, Inc. constitute or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the inherent uncertainty of finding and developing oil and gas properties, the technological and financial difficulties inherent in these activities, the price of hydrocarbons and the Company’s ability to estimate accurately net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company’s financial results can be found in the Company’s reports filed with the Securities and Exchange Commission.

Company Contact:

Xtreme Oil & Gas, Inc.
(214) 432-8002
www.xtoginc.com

Investor Contact:

Alliance Advisors, LLC
Alan Sheinwald, President & Founder
(914) 669-0222
ASheinwald@AllianceAdvisors.net
www.AllianceAdvisors.net

Xtreme Oil & Gas Announces Effective Water Flood Operations in West Texas

PLANO, TX–(Marketwire - Feb 7, 2012) - Xtreme Oil & Gas, Inc. (OTCQB: XTOG) (OTCBB: XTOG), an independent energy company engaged in the exploration, development, and production of crude oil, is pleased to announce that the company has received confirmation that its water flood injection technique at its 5 Star West Thrifty Texas property has been successful in creating pressure and fluid recovery to the production wells.

The water flood injection method employed here injects water back into a reservoir to increase pressure and stimulate oil production. The injections of water come from strategically placed wells and pumps that wash the trapped oil out of the formation towards the producing wellbores. The effectiveness of this technique is demonstrated when the presence of oil and water appear in the targeted production wells.

“Management is extremely pleased to announce that our strategic drilling methods have been validated,” stated Mr. McAndrew, CEO of Xtreme Oil & Gas. “The communication amongst our wells signals that we are rapidly approaching significant oil extraction from our West Thrifty Texas location. The drilling site is currently 1,200 acres and has previously produced over 8 million barrels of oil. In keeping with our strategic drilling initiatives, we expect to begin oil production from this site in late February.”

About Xtreme Oil & Gas
Xtreme Oil & Gas, Inc. is a rapidly growing Dallas-based independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas with operations from properties it owns in Texas, Oklahoma, and Kansas. The company’s oilfield services disposes of saltwater for independent energy producers.

Forward-Looking Statements
Statements included in this release related to Xtreme Oil & Gas, Inc. constitute or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the inherent uncertainty of finding and developing oil and gas properties, the technological and financial difficulties inherent in these activities, the price of hydrocarbons and the Company’s ability to estimate accurately net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company’s financial results can be found in the Company’s reports filed with the Securities and Exchange Commission

Company Contact:

Xtreme Oil & Gas, Inc.
(214) 432-8002
www.xtoginc.com

Investor Contact:

Alliance Advisors, LLC
Alan Sheinwald, President & Founder
(914) 669-0222
ASheinwald@AllianceAdvisors.net
www.AllianceAdvisors.net

February 2, 2012 12:03 PM ET.

In the news release, “Xtreme Oil & Gas to Be Featured on The Money Show With Steve Crowley,” issued earlier today by Xtreme Oil & Gas, Inc., we are advised by the company that the name of the radio show should be “The Money Channel with Steve Crowley” instead of “The Money Show with Steve Crowley” as originally issued. Complete corrected text follows.

Xtreme Oil & Gas to Be Featured on The Money Channel With Steve Crowley

PLANO, TX — February 2, 2012 — Xtreme Oil & Gas, Inc. (OTCQB: XTOG) (OTCBB: XTOG), an independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas, is pleased to announce that CEO, Mr. Willard McAndrew, will be interviewed on American Scene Radio - The Money Channel with Steve Crowley Live on Monday, February 6th 11:00 am Eastern Standard Time. Listeners can tune in at: www.moneychannel.tv to hear the live interview.

“Xtreme Oil & Gas are thankful to Steve Crowley and American Scene Radio for providing us with the opportunity to detail our compelling growth strategy to the investment community,” stated Mr. McAndrew, CEO of Xtreme Oil & Gas. “We believe the timing of this interview is ideal, due to the recent operational achievements that our company has undergone. The Company is now producing oil from several sites, progressing with commercialization of our high-margin saltwater distribution business, and expecting to break ground on additional oil producing locations in the near term. We believe the company is well situated for future growth and are excited to detail our business model to such a relevant audience.”

The Money Channel with Steve Crowley possesses approximately 3 Million listeners during the three-hour daily radio broadcasts through the Information Radio Network, and on the Internet worldwide. Mr. Crowley interviews all of the top experts, analysts, money managers and authors covering stocks, investments, business, the economy and trends, Small-Cap CEOs and much more. More than 200 Financial “Stars” are interviewed in constant rotation… from Steve Forbes, Tobin Smith, Beth Dater, Larry Kudlow plus many more. The show is broadcast LIVE around the country.

About Xtreme Oil & Gas
Xtreme Oil & Gas, Inc. is a rapidly growing Dallas-based independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas with operations from properties it owns in Texas, Oklahoma, and Kansas. The company’s oilfield services disposes of saltwater for independent energy producers.

Statements included in this release related to Xtreme Oil & Gas, Inc. constitute or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the inherent uncertainty of finding and developing oil and gas properties, the technological and financial difficulties inherent in these activities, the price of hydrocarbons and the Company’s ability to estimate accurately net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company’s financial results can be found in the Company’s reports filed with the Securities and Exchange Commission.

About Steve Crowley’s American Scene Radio Program
America’s #1 Money-Talk Radio Program… owns and produces the most successful, national Money-talk Radio program in America. “Steve Crowley’s American Scene” was launched from the Disney/MGM Radio Studios at the Walt Disney World Resort in June 1990. American Scene attracts a larger and larger radio audience every month from coast to coast.

Forward-Looking Statements
Statements included in this release related to Xtreme Oil & Gas, Inc. constitute or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the inherent uncertainty of finding and developing oil and gas properties, the technological and financial difficulties inherent in these activities, the price of hydrocarbons and the Company’s ability to estimate accurately net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company’s financial results can be found in the Company’s reports filed with the Securities and Exchange Commission.

Contact Information

Contact
Xtreme Oil & Gas, Inc.
(214) 432-8002
www.xtoginc.com

Investor Relations:
Alliance Advisors
Thomas Walsh
(212) 398-3486

Xtreme Oil & Gas to Be Featured on The Money Show With Steve Crowley

Interview February 6th 11:00 AM (EST)

PLANO, TX–(Marketwire - Feb 2, 2012) - Xtreme Oil & Gas, Inc. (OTCQB: XTOG) (OTCBB: XTOG), an independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas, is pleased to announce that CEO, Mr. Willard McAndrew, will be interviewed on American Scene Radio - The Money Show with Steve Crowley Live on Monday, February 6th 11:00 am Eastern Standard Time. Listeners can tune in at: www.moneychannel.tv to hear the live interview.

“Xtreme Oil & Gas are thankful to Steve Crowley and American Scene Radio for providing us with the opportunity to detail our compelling growth strategy to the investment community,” stated Mr. McAndrew, CEO of Xtreme Oil & Gas. “We believe the timing of this interview is ideal, due to the recent operational achievements that our company has undergone. The Company is now producing oil from several sites, progressing with commercialization of our high-margin saltwater distribution business, and expecting to break ground on additional oil producing locations in the near term. We believe the company is well situated for future growth and are excited to detail our business model to such a relevant audience.”

The Money Show with Steve Crowley possesses approximately 3 Million listeners during the three-hour daily radio broadcasts through the Information Radio Network, and on the Internet worldwide. Mr. Crowley interviews all of the top experts, analysts, money managers and authors covering stocks, investments, business, the economy and trends, Small-Cap CEOs and much more. More than 200 Financial “Stars” are interviewed in constant rotation… from Steve Forbes, Tobin Smith, Beth Dater, Larry Kudlow plus many more. The show is broadcast LIVE from all the Money Shows around the country.

About Xtreme Oil & Gas
Xtreme Oil & Gas, Inc. is a rapidly growing Dallas-based independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas with operations from properties it owns in Texas, Oklahoma, and Kansas. The company’s oilfield services disposes of saltwater for independent energy producers.

Statements included in this release related to Xtreme Oil & Gas, Inc. constitute or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the inherent uncertainty of finding and developing oil and gas properties, the technological and financial difficulties inherent in these activities, the price of hydrocarbons and the Company’s ability to estimate accurately net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company’s financial results can be found in the Company’s reports filed with the Securities and Exchange Commission.

About Steve Crowley’s American Scene Radio Program

America’s #1 Money-Talk Radio Program… owns and produces the most successful, national Money-talk Radio program in America. “Steve Crowley’s American Scene” was launched from the Disney/MGM Radio Studios at the Walt Disney World Resort in June 1990. American Scene attracts a larger and larger radio audience every month from coast to coast.

Forward-Looking Statements
Statements included in this release related to Xtreme Oil & Gas, Inc. constitute or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the inherent uncertainty of finding and developing oil and gas properties, the technological and financial difficulties inherent in these activities, the price of hydrocarbons and the Company’s ability to estimate accurately net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company’s financial results can be found in the Company’s reports filed with the Securities and Exchange Commission.

Contact Information

Contact
Xtreme Oil & Gas, Inc.
(214) 432-8002
www.xtoginc.com

Investor Relations:
Alliance Advisors
Thomas Walsh
212-398-3486