Stetson Announces Termination of Farm-Out Agreement

Stetson Oil & Gas Ltd. (TSX VENTURE:SSN) has terminated the farm-out agreement
(the "Agreement") entered into with Sagres Energy Inc. related to LLA11, a
126,494 acre block located in the Llanos Basin of Columbia, a mature and
prolific basin in the foreland of the Colombia Andes close to the giant Cano
Limon Oil Field (the "Block"). Stetson successfully acquired the Block in June
2010 through a bidding round organized by the Agencia Nacional de Hidrocarburos
of Colombia ("ANH").


As per the terms of the Agreement, Stetson farmed out 90% interest in the block
to a subsidiary of Sagres in exchange for retaining a 10% carried interest
during the exploration phase, which consisted of a minimum expenditure of USD$9
million over a period of 36 months.


Stetson has recently identified several violations and breaches of
representations and warranties contained in the Agreement primarily as a result
of the financial standing of Sagres and the work program and obligations not
being fulfilled. Stetson has submitted a letter to Sagres identifying the
various breaches and noting the termination of the Agreement. As a result of the
termination of the Agreement Stetson now holds a 100% interest in the Block.


Stetson reports that it also received a letter from the ANH indicating that
Stetson was in default under the exploration and production agreement entered
into among the parties due to a failure to submit an additional guarantee for
$3.5 million and for failure to advance the work program related to the Block.
Stetson intends to try and negotiate an extension with the ANH so that the
company may attempt to remedy the default.


Stetson is a junior oil and gas company with its securities listed under the TSX
Venture Exchange under the symbol "SSN".


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 termination of the
Agreement and the notice of default related to the exploration and production
agreement. 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.
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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Ahmed Said
Chairman & CEO
+1 (403) 263 3000
asaid@forbesenergygroup.com

Stetson Oil & Gas Ltd. (TSXV:SSN)
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