2011-03-30-2011-03-15

To acquire 50% of the leases and WI on 8,516 acres in KS.

Xtreme Oil & Gas Inc., Plano, Texas, (OTCBB; Pinksheets: XTOG) reports it has the rights to acquire 50% of the leases and working interest on 8,516 acres in Kansas from Husky Ventures Inc. for $1.75 million. Husky Ventures will initially be the operator of the project.

As part of its payment, Xtreme plans to issue 750,000 shares of its common stock. The company has paid $125,000 and has agreed to pay an additional $125,000 by April 4. If the balance of $1.7 million is not paid in full by May 9, Husky Ventures may reimburse the stock portion and reduce the company's working interest to 15%.

Xtreme's newest project in Kansas is part of a larger trend that has produced approximately 23.824 million barrels of oil from the Maquoketa dolomite and the Viola dolomite formations, representing only 12% of the original oil in place. It is estimated that the remaining 88% of the oil (217 million barrels of oil) in the larger trend is still in place within the historic production boundaries of the leaseholds.

The new planned horizontal wellbores will be strategically placed between old wells where the reserves have not been depleted. It is estimated that an additional 10% to 15% of the reserves can be produced from this larger formation, representing more than 20 million barrels of oil, with each horizontal wellbore potentially producing 150,000 to 225,000 barrels of oil over the life of the well.