VANCOUVER, BC / ACCESSWIRE / February 2, 2017 / Oyster Oil and Gas Ltd. ("Oyster" or the "Company") is pleased to confirm that, following negotiations with the Office des Mines Nationales et des Industries Stratégiques ("OMNIS"), an agreement has been reached to provide a two-year extension to the current exploration phase of the Production Sharing Contract ("PSC") to July 2019. Furthermore, a refinement of the terms and work program has also been agreed so as to focus the program more tightly on achieving the drilling scheduled for late 2018/early 2019.

Oyster has opened an office in Antananarivo. The various financial guarantees have also been restructured to enable a greater focus to be on technical work and investment in Block 1101. The technical work program for 2017 has also been defined, which will include field work and detailed surveys to improve the structural definition and drilling locations on the prospects.

Michael Wood, President and Chief Executive, commented: "Oyster and OMNIS have worked closely together to ensure the continuing investment and future success in Block 1101 and I'd like to acknowledge the contribution and professionalism of the OMNIS team during this process. Oyster has mapped a number of multi-billion barrel structures in Block 1101; these are mapped as conventional, light oil plays based on the evidence from the 2014 drilling and coring program which confirmed a mature 'light oil source' being present in the basin. Oyster looks forward to engaging with the various agencies of the Government of Madagascar and the local communities as we work together to develop the potential in Block 1101."

Oyster Oil and Gas Ltd.

Oyster is an international oil and gas exploration company with a focus on Eastern Africa. Oyster holds production sharing contracts interests with the Government of Djibouti and the Government of Madagascar. Oyster holds 100% of four blocks comprising approximately 3.5 million acres onshore and offshore in Djibouti; Oyster also holds a 100% working interest in Block 1101, onshore Madagascar which covers approximately 2.8 million acres.

For further information, please contact:

Emily Davies, Corporate Secretary

Tel: (604) 628-5616

Fax: (604) 662-7950

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.

SOURCE: Oyster Oil and Gas Ltd.