Drillmar encounters pay and flows well  
 

Georgetown, Cayman Islands - January 4, 2008

The Rooke Ranch well in Refugio County, Texas reached a total depth of 7,100 feet on January 2nd 2008. Over 30 feet of net pay was encountered. This well was the first well to be drilled in a generating program where Drillmar Oil&Gas, Inc participates with 15% and is the operator.

 “This is a very significant discovery for Drillmar and was possible due to the use of proprietary seismic reprocessing technique held by partners in the generating Joint Venture where Drillmar is the operator.  The discovery both sets up new drilling locations in the same field as well as additional already identified delineated projects in the area discovered with the same reprocessing technique” stated Chief Operating Officer, David McCarver.

The previously announced discovery in North Francitas Field in Jackson County, was flow tested on 12/30/07. The well will be placed on production as soon as facilities are installed. An independent engineering firm has estimated the remaining reserves for the field to apprx 500,000 BOE.  The development plan is to add two additional producers, artificial lift and one or more salt water disposal facilities for a production target of apprx 100 bbls/d. Drillmar Energy Inc has a 50 percent working interest and operates the well.

The Bourque #1 exploration well in Iberville Parish in Louisiana drilled to apprx 10,700 feet is currently being evaluated. Two zones tested unproductive. The third and last prospective zone is currently being perforated and swabbed. After flow testing it will be decided if it is economically feasible to place the well on production. The Company holds a 25% interest in the well.

All three wells were drilled with casing, the first two with the Company’s new LOC 250 Casing Drilling Rig.

For further information contact Haavard Strommen, Chief Financial Officer 345-925-1768 or visit the Company's website at www.drillmar.com

Drillmar Energy Inc is an oil and gas exploitation and production company. In the US, Drillmar Energy Inc is operating through its wholly owned subsidary Drillmar Oil & Gas Inc. Drillmar's strategy is to exploit the use of non-traditional drilling techniques and technologies.  These techniques and technologies include casing drilling, managed pressure drilling and certain petrophysical/geophysical reprocessing and remapping.  We have consistently made significant improvements in the efficiency and cost of developing oil and gas reserves for BP, Shell, PDVSA, PEMEX and Apache as well for our own account. We are currently qualified operator in Texas and Louisiana and have established appealing production and/or acreage positions in those states.

Forward-Looking Statement. This news release may contain certain forward-looking statements including declarations regarding Drillmar Energy Group and its subsidiaries' expectations, intentions, strategies and beliefs regarding the future. All statements contained herein are based upon information available to Company management as of the date hereof, and actual results may vary based upon future events, both within and without the control of management, including risks and uncertainties that could cause actual results to differ materially including, among other things, the impact that acquisitions may have on the company and its capital structure, exploration results, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditure requirements, competition, governmental regulations and other factors.