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Stetson Extends Option Agreement for Offshore African Acreage

TORONTO, ONTARIO -- (Marketwire) -- 01/08/13 -- Stetson Oil & Gas Ltd. (TSX VENTURE:SSN) reports that it has elected to extend the term of the exclusive option agreement (the "Option Agreement") entered into with a private company ("Privateco"), as extended on October 22, 2012 and December 4, 2012, for the option to acquire an interest in two prospective exploration blocks offshore West Africa.

Stetson and Privateco have mutually agreed to extend the term of the Option Agreement until February 28, 2013. In consideration for the extension, and in addition to the original principal and agreed to facilitation fees, Stetson will receive an additional sum of USD $50,000 plus all applicable interest accrued on the loan granted by Stetson under the Option Agreements. Privateco has agreed to immediately pay all outstanding facilitation fees, all accrued interest and prepay all interest to be accrued up to February 28, 2013.

Stetson is a junior oil and gas company with exploration assets in North Dakota, USA.

Regulatory Statements

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the terms and conditions of the Option Agreement; or the terms of the loan or extension agreement with Privateco. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Stetson, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; risks associated with operation in foreign jurisdictions; ability to successfully integrate acquired properties; foreign operations risks; and other risks inherent in the oil and gas industry. Although Stetson has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Stetson does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contacts:
Stetson Oil & Gas Ltd.
Ahmed Said
President & CEO
+1 (403) 263 3000
asaid@forbesenergygroup.com

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