Ginger announces new discovery in Texas

Ginger Oil announces that Texas Arch #2 well tested a significant gas flow. The test result shows a rate of 1,014 MCFD and will increase Gingers cash flow by approximately $17,000 per month. The re-drilling of Texas Arch #1 has resumed. The first of two exploration wells in Kansas has begun.

On December 17, 2007, a gas-bearing zone was stimulated to produce at greater rates through the use of an “acid frac” treatment.

The most recent test rates taken are as follows:

1,014 MCFD (thousand cubic feet of gas per day) plus 24 BW (barrels of water) on a 26/64-inch diameter choke and with 360 psi flowing tubing pressure. The water that is flowing back is from the spent acid water that was injected into the formation. Ginger has a 10% working interest and a 7.5% revenue interest in this well and in 15,000 net acres over prospective areas that surrounds this well site. The actual well name and location are not revealed at this time for competitive reasons. This will add approximately $17,000 per month to our cash flow.

The size of the gas reserves will be estimated after production performance is studied. The well will be placed on production in approximately three months time. If the well performs as expected there are a number of additional locations available in this prospect closure on which to drill.