2009-08-04-2009-08-01

To buy North Grimes property in Grimes & Brazos cos., TX, involving 1,500 acres in Giddings Field, gaining 1.5-5 MMcf/d.

Bonanza Oil & Gas Inc., Houston, (OTCBB: BGOI) plans to acquire the North Grimes property in Grimes and Brazos counties, Texas, from an undisclosed seller for approximately $220,500 in stock. The North Grimes lease consists of 1,500 acres in Giddings Field and is offset on three sides by wells producing from multiple formations drilled horizontally to a total depth of 12,000 feet to 14,000 feet. Production ranges from 1.5 million to 5 million cubic feet per day.