Bonanza Oil and Gas, Inc., a Nevada Corporation, reports the strategic alliance between Bonanza Oil and Gas, Inc. and Westerly Exploration, Inc.

As a result of the alliance with Westerly, and the merger with Black Pearl Energy, Inc., Bonanza Oil & Gas will develop two additional properties in West Texas. Westerly Exploration will act as the operator in addition to maintaining a working interest.

The first property is the Bourland Field in Ector County, Texas. The Bourland Field, currently operated by Westerly, consists of 8 producing wells from the San Andres Formation at 4,400 feet, known as the Edwards Unit. The Unit has 960 acres that permit Bonanza, along with Westerly, the opportunity to drill an additional 8 wells, of which Bonanza retains a 75% Working Interest. The current drilling schedule is to commence on or before October 1, 2008.

The second property is the Good North Field in Borden and Howard Counties, Texas. The Good North Prospect consists of 1,263 acres, and Bonanza will retain a 75% Working Interest, with Westerly acting as Operator of the property. The Good North affords Bonanza and Westerly drilling opportunities offset to historical production in the Jo Mill Spraberry and Dean zones. The Good North also has drilling opportunities in the Wolfcamp and Canyon Zones. Westerly has obtained 3D seismic coverage to further assist in the evaluation of the Good North Project.

"The acquisition of these Properties provides current producing wells and additional PUD locations to Bonanza Oil & Gas. Bonanza's continuous drilling program will increase reserves, revenues, and stock holder's equity. We are pleased to continue and expand our Strategic Alliance with Westerly Exploration," said Bill Wiseman, President and CEO.

Tags: Bonanza Oil and Gas, Westerly Exploration