Oyster Oil and Gas Ltd. Finalizes Agreement to Acquire Oil and Gas Interests in Madagascar

Oyster Oil and Gas Ltd. ("Oyster") (TSX:OY) is pleased to announce it has
finalized an agreement with Candax Energy Inc. to acquire its 10% Working
Interest in Block 1101 onshore Madagascar (the "Transaction"). The consideration
for the Transaction will be a $500,000 cash payment on closing and upon the
drilling of the first exploration well commencing a further payment of $250,000
and $250,000 shares in Oyster. 


Michael Wood, President & CEO commented: "Oyster is very pleased with this
acquisition in Madagascar, which we believe holds strategically significant oil
exploration potential. The Oyster team has a considerable understanding of Block
1101, having been responsible for the original signing of the Production Sharing
Contract ("PSC") with the Government of Madagascar in 2006. Together with Afren
plc., the Operator, we will be commencing an extensive work program in 2013-2014
that includes high impact exploration activity and with a drilling program
scheduled within the next 12 months". 


Background information on Block 1101, Onshore Madagascar & Afren plc.: 

Block 1101 is located onshore in the north western part of Madagascar and the
PSC covers an area of some 15,000km2 (3.7 million acres). Since 2006 airborne
gravity and magnetic surveys and some 430km 2D seismic have been acquired as
well as extensive geological field work and mapping undertaken. A number of
substantial prospects and leads have been identified mainly in the potential
Triassic and Jurassic sandstone reservoir formations. 


Afren plc. is listed on the London stock markets (LON.AFR) and is a highly
successful E&P company with a strong African focus; the current market
capitalization of Afren is approximately $2.5 Billion. Afren holds a 90% Working
Interest in Block 1101.


About Oyster Oil and Gas Ltd.

Oyster is an oil and gas exploration company with a focus on eastern Africa.
Oyster operates four blocks onshore and offshore in the Republic of Djibouti,
located in East Africa; the blocks covering some 3.5 million acres. Oyster also
has the option to acquire up to a 60% interest in the Kalum Property located in
British Columbia, Canada.


About Candax Energy 

Candax is an international energy company with offices in Toronto and Tunis. The
Candax group is engaged in exploration and the production of oil and gas in
Tunisia.


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 news release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Oyster Oil and Gas Ltd.
Martin Bajic
Chief Financial Officer
[phone]
[phone] (FAX)