2008-10-10-2008-10-01

To acquire rights on 10,000 acres in eastern KY with potential for 300-400 sites.

Consolidation Services Inc., Henderson, Nev., (OTCBB: CNSV) plans to acquire 100% of the oil and gas rights on approximately 10,000 acres in eastern Kentucky from Kentucky-based Eastern Kentucky Land Corp. for $200,000 in cash and $800,000 in restricted stock in a total deal value of $1 million. The oil and gas rights have the potential for approximately 300 to 400 gas well drilling sites and are on the same acreage the company recently acquired an interest in through its purchase of a 50% equity ownership interest in Kentucky-based Buckhorn Resources LLC, the owner of the land. Consolidation Services president and chief executive Johnny Thomas says, "Utilizing a majority of restricted common shares and a smaller amount of cash for the acquisition of 100% of the oil and gas rights on this sizable tract of land enables CSI to continue to accelerate its strategic objective to generate cash flow from the development of unproven energy resources believed to be situated on the approximately 10,000 acres, while allowing the sellers the potential to realize greater value from the sale of the assets in the event of future increases in value of the stock consideration component received."