agreement

                                                                    EXHIBIT 99.1

CADENCE RESOURCES ANNOUNCES PLAN TO ACQUIRE MICHIGAN ANTRIM PRODUCTION AND
DRILLING LOCATIONS

Tuesday, January 17, 2006


Cadence Resources Corporation (CDNR) is pleased to announce that it has entered
into an agreement to purchase from its joint venture partner, O.I.L. Energy
Corp. (together with its affiliates) its position in the Hudson project in the
Michigan Antrim Shale. Most of the assets to be acquired are already partially
owned by Cadence. The acquisition increases the Cadence ownership in the project
area from 49%to 96% working interest in many of the fields, and allows Cadence
to control the related pipeline and production facilities.

The purchase price is approximately $27.5 million, subject to certain
adjustments. Management is currently evaluating several potential financing
options and will announce a definitive financing package within the next few
weeks. The closing is anticipated to occur prior to March 1st 2006.

As a result of this acquisition, Cadence expects to add more than 3,000 Mcf per
day to its existing production, and will be able to increase production at a
faster pace as new production units come online. Additionally, the acquisition
adds over 11,000 net acres to the Company's inventory and 42 new potential
Antrim drilling locations. The Company's engineers estimate the acquisition adds
22 BCF in proven reserves.

William Deneau, President and Chief Executive Officer commented, "Production to
date in the Hudson project area has exceeded expectations. We are excited to
have the opportunity to increase our position in this area. This acquisition
puts us in a strong position to meet our projected production target of 10
million cubic f