LA ESPERANZA OIL & GAS, LLC MOVES FORWARD IN ITS MAJOR LEASE ACQUISITION AND DEVELOPMENT IN THE PALO DURO BASIN AND ACCEPTS PUBLIC APOLOGY FROM BANKERS PETROLEUM

    /24-7PressRelease/ - ARLINGTON, TX, August 03, 2005 - In December 2004, La Esperanza's Chief Executive Officer, Nancy Shockey, entered into a one year contract with Canadian based Bankers Petroleum. In less than one year, La Esperanza has leased in excess of Three Hundred Fifty Three Thousand Gross Mineral Acres in the Basin, with over Two Hundred Fifty Thousand Net Mineral Acres.

During the course of La Esperanza's leasing program, Bankers Petroleum unilaterally decided to obtain leases on its own and then filed a lawsuit in the 110th District Court in Floyd County, Texas, challenging among other items, La Esperanza's right to continue leasing in Floyd, Motley, and Briscoe counties. La Esperanza promptly answered the lawsuit and filed a counterclaim against Bankers. After only one day in Floydada, on July 18, 2005, the factual evidence presented prompted Bankers' President, Ford Nicholson, to not only offer to settle the case outright, but in a rare move for a publicly traded company, he agreed to provide a private as well as a public apology to La Esperanza and Ms. Nancy Shockey.

To keep its commitment to over 500 La Esperanza Lessors, and to move the Palo Duro Basin project forward, La Esperanza agreed to accept the apology, and has granted Bankers the right to do the clean up work to fill in specific blocks in La Esperanza's massive lease play, which will accrue to the benefit of both La Esperanza and Bankers Petroleum. Among other things under its settlement with Bankers, La Esperanza will retain its Overriding Royalty Interests and Right To Participate in all of the leases acquired by La Esperanza, as well as those which Bankers has been taking in its own account since the early stages of the contract. La Esperanza will continue to have these rights on all leases Bankers acquires during the term of the contract in the clean up area. While allowing Bankers to do the clean up work, La Esperanza will continue to move forward with its Leasing Acquisition and Development in the Palo Duro Basin in Floyd, Motley and Briscoe Counties as well as in surrounding counties. A complete text of the public apology as well as praise from Bankers Petroleum for the monumental work performed by La Esperanza Oil & Gas and Nancy Shockey is as follows:

BANKERS PETROLEUM ISSUES PUBLIC APOLOGY AND DISMISSES LAWSUIT FILED AGAINST LA ESPERANZA OIL & GAS, LLC AND NANCY SHOCKEY

Bankers Petroleum (US) Inc. today issued a private and public apology and all parties dismissed all claims in the lawsuit filed July 6, 2005, in the 110th District Court, Floyd County, Texas against La Esperanza Oil & Gas and Nancy Shockey. Mr. Ford Nicholson, President of Bankers Petroleum (US) Inc. stated in the apology that, "In the hearing held in Floydada on Monday, July 18, 2005, it became apparent that due to misinformation and miscommunications, some claims were erroneously stated in Bankers' pleadings filed in the lawsuit. It certainly appears to me that the facts revealed at the hearing exonerate La Esperanza and Nancy Shockey from many of the allegations of wrongdoing."

"Bankers hereby congratulates La Esperanza on its monumental efforts in the Palo Duro Basin Shale Play. La Esperanza has successfully acquired 50,000 Net Mineral Acres from a U.S. public company, then leased an additional 150,000 Gross Mineral Acres beginning in the summer of 2004 through March 2005, and then leased an additional 153,000 Gross Mineral Acres in the Shale Play in Briscoe, Motley, and Floyd Counties. These extraordinary results are to the mutual benefit of both La Esperanza and Bankers, and the company has the highest regard for La Esperanza's achievements in the Palo Duro Basin Shale Play."

La Esperanza has accepted the apology and both parties have agreed to settle the lawsuit and resolve any existing disputes they have, and move ahead in their respective future business activities.
Bankers at this time would also like to clarify that the above acreage mentioned equals about 255,000 net acres.

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