Exterra Energy, Inc. Announces 100 Shares to All Prior Shareholders of Record and Corporate Cash Dividend Policy

AMARILLO, TX, May 18 (MARKET WIRE) --
Exterra Energy Inc. (OTCBB: EENI) announced today that Exterra's Board of
Directors authorized a 100 share initial restricted stock to all
shareholders of record at the Special Director's Meeting held April 15,
2009, as part of the stock restructure, to make sure no Exterra
Shareholder, prior to the stock split, was split out. In addition to the
corporate stock dividend policy, the company has authorized to distribute
25% of the after tax net annual earnings of Exterra to all stockholders
of record.

Todd R. Royal, President of Exterra Energy Inc., stated, "As part of our
corporate strategy the board was pleased to issue 100 shares in the form
of restricted stock to all prior Stockholders of record and implement a
cash dividend program for shareholders of Exterra." He went on to
comment, "Our board has begun aggressively improving the company's
balance sheet with acquisitions, which will enable the company's
significant cash flow which in turn allows for the cash payment equal to
25% of the net profits to be paid in dividends."

Robert Royal, Chairman and CEO, commented, "We believe the market and our
shareholders will appreciate the cash dividends. The company's management
team has found success using this financial model in our past public
corporate experience." Mr. Royal went on to state, "Our strategy is to
improve the company's balance sheet through development of the Company's
mineral assets and strategic acquisitions of undervalued properties, by
using our assets, equity markets, commercial banking and investment
banking relationships and to improve earnings per share and move Exterra
Energy to a senior exchange."

About Exterra Energy, Inc.

Exterra Energy, Inc. (OTCBB: EENI) is an emerging oil and gas exploration
production company based in Amarillo, Texas, with a Field Office in Parker
County, Texas. Exterra is committed to a strong acquisition strategy
purchasing producing oil properties that are undervalued due to current
market conditions. Exterra is primarily active in the development,
acquisition and operations of oil & gas properties, including the Newark
East (Barnett Shale) Gas Field in North Texas and now holds an undivided
interest in approximately 17,750 gross acres of leases in the Newark East
(Barnett Shale) area with over 63 wells producing on the acreage. The
Company is also active in Permian Basin West Texas with mineral acres,
producing oil and gas wells, wells being put online and chemically
treated, a new Saltwater Disposal Facility, a 12 mile gas gathering
system and a new gas contract with Panther Pipeline and Southern Union
that will increase production in Pecos County. The Barnett Shale gas
field is undoubtedly one of the largest producing gas fields in the
continental U.S. today, and Exterra is committed to developing and
expanding its acreage and assets within the core area of the field.
Exterra is further committed to increasing its oil assets by acquiring
additional producing oil wells in the Permian Basin in West Texas, as
well as other areas. Exterra's strategic plan is to take advantage of the
opportunity that exists in the oil industry today by acquiring
undervalued producing oil wells, since many in the Oil Industry are
heavily leveraged.

The Company and its representatives may from time to time make written or
oral forward-looking statements, including statements contained in the
Company's filings with the SEC and in its reports to shareholders. One can
identify these forward-looking statements by use of words such as
"strategy," "expects," "plans," "anticipates," "believes," "will,"
"continues," "estimates," "intends," "projects," "goals," "targets" and
other words of similar meaning. One can also identify them by the fact
that they do not relate strictly to historical or current facts. These
statements are based on our assumptions and estimates and are subject to
risks and uncertainties. In connection with the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995, the Company is
hereby identifying important factors that could cause actual results and
outcomes to differ materially from those contained in any forward-looking
statement made by or on behalf of the Company.

INVESTOR RELATIONS
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