Drilling begins on the grace #3 and Bedford Energy leases additional acres

OTC: BFDE MEDIA RELEASE July 21, 2006 DRILLING BEGINS ON THE GRACE #3 AND BEDFORD ENERGY LEASES ADDITIONAL ACRES EDMOND, Oklahoma, July 21, 2006; Newswire - Bedford Energy, Inc. (OTC "BFDE") (Cusip 076110 105) announced today it began drilling it's Grace #3 well, a direct offset to the south of the Grace #1. The Grace #3 will be drilled to an approximate depth of 5,200 feet through the Hunton formation. The Grace #3 is the second of a five well drilling program in the East Chandler Prospect in Oklahoma, and is a joint venture with Grace Oil and Gas and Buckeye Exploration. Bedford Energy also has leased an additional 160 acres in the East Chandler field. For more detailed information on the Company or for a current status of our drilling results, please contact [email protected] or visit www.bedfordenergy.com About Bedford Independent Oil and Gas Bedford Energy specializes in the recovery of oil & gas reserves through acquisition and project development, including existing field enhancement, and low-risk exploration opportunities. The Company has also created an oil field equipment division with specific industry alliances for resale. SEC DISCLAIMER Information contained herein may contain forward-looking statements which are not guarantees of future success or that there cannot be losses. The actual presence or recoverability of reserves for optimal and timely recovery, well costs or schedules or other matters cannot be promised. This release contains "Safe Harbor" provisions of the US Private Securities Litigation Reform Act of 1995 & involves risks and uncertainties, which could cause actual results to differ materially from those estimated herein. Bedford believes the forward-looking statements are based on current reasonable assumptions but can give n assurance that results will be achieved. Unpredictable & unanticipated risks, trends and uncertainties including inability to accurately forecast operating results; the potential inability to achieve profits or have cash flow; access to financing; and other must be understood. Bedford assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Bedford Energy, Inc, 221-B W. Edmond RD, Edmond OK 73003