BASE OIL & GAS LTD. ANNOUNCES CLOSING OF NON-BROKERED FINANCING AND TIE-IN OF
SECOND EARNING WELL

CALGARY, Sept. 1 /CNW/ - Base Oil & Gas Ltd. ("Base" or the "Company") (TSX VENTURE: BOG) has closed its previously announced non-brokered private placement (the "Private Placement") for aggregate gross proceeds of $373,449.90.  The Company issued 1,244,833 common shares on a "flow-through" basis under the Income Tax Act (Canada), at a price of $0.30 per share.  In connection with the Private Placement, the Company paid a 5% finder's fee. Total gross proceeds of $1,000,000 were raised under this Private Placement together with the Company's private placement that closed on June 30, 2010.

Proceeds from the Private Placements will be used towards financing the Company's share of the second earning well ("2nd Earning Well") which has been tied in and will be on production September 1, 2010. Under a previously announced farm-in agreement to develop Cardium production with a private company in the Pembina area, Base has earned a 22.5% working interest in this well and the related section. 

All securities issued in connection with the Private Placement will be subject to a four-month hold period. 

Base is a Calgary based emerging oil and gas company, focused on the development of oil & gas reserves in the Western Canadian Sedimentary basin.

Neither the 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.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements.  More particularly, this press release contains statements concerning the use of funds from the Private Placement and the planned operations of the Company.  The forward-looking statements contained in this document are based on certain key expectations and assumptions made by the Company with respect to the use of funds from the Private Placement and the Company's planned operations.  Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct.  Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.  Actual results could differ materially from those currently anticipated due to a number of factors and risks.  These include, but are not limited to, the failure to obtain the necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks, commodity price and exchange rate fluctuations).  The forward-looking statements contained in this document are made as of the date hereof and the Company takes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

For further information:

or visit the Company's website at www.baseoilandgas.ca