EXHIBIT 99.1


                             CHELSEA OIL & GAS LTD.

     CHELSEA OIL & GAS LTD. ANNOUNCES TWO-YEAR EXTENSION TO AUGUST 2018 FOR
           EXPLORATION EXPENDITURE ON IT'S 5.022 MILLION ACRE ATP 582

Calgary, ALBERTA, (June 16, 2014) - Chelsea Oil & Gas Ltd. ("Chelsea" or the
"Company") (OTCQB: COGLF) is pleased to announce the effect of recently
announced changes to the Petroleum and Gas (Production and Safety) Act 2004, as
a result of the passing of the Land and Other Legislation Amendment Bill 2014 by
the Queensland, Australia Government (the "State").

Summary of statutory changes

     o    Statutory two-year extension for all exploration permits held under an
          Authority to Prospect ("ATP")

     o    Extension of existing work programmes to six years from the current
          four years

     o    Defer mandatory relinquishment requirements for two years while
          retaining existing available extension provisions

     o    Simplification and relaxation of requirements under which companies
          can apply for a Petroleum Lease ("PL")

In addition, the State indicated there would be greater flexibility afforded to
operators to amend current work programmes. Amendments will be assessed on a
case by case basis at the Minister's discretion, on the basis that it meets the
State's objective with regards to optimization of the State's petroleum
resources.

Impact on Chelsea's Tenements and Work Programme

Chelsea's South Georgina Basin ATP 582 exploration commitment is comprised of
the acquisition of 300 km of 2D seismic and drilling 4 exploration wells with a
total minimum expenditure for the drilling and seismic of A$11.1 million. After
giving effect to the statutory extension, Chelsea now will have to incur these
expenditures by August 31, 2018.

Chelsea's PL's in the Surat Basin include 6 oilfields and 1 undeveloped gas
discovery which collectively have independently assigned Probable reserves of
1.33 million barrels of oil equivalent. Although the new legislation does not
extend the term of these PL's, which currently expire between 2024 and 2031, it
will ensure that Chelsea will be able to develop these leases systematically,
with the ability to amend development plans as required to the extent Chelsea
can demonstrate it meets the States objective of optimizing petroleum resources
as described above.


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The process of applying for additional PL's has been simplified under the new
legislation. Following the amendments, in order to apply for a PL, Chelsea will
now simply need to submit with the application a statement from a suitably
qualified person confirming the presence of commercial quantities of oil and gas
in combination with a development plan. These arrangements replace the previous
requirement to demonstrate that at least 20% of the discovered resources were a
proved or probable reserve. These amendments will allow production and
development more rapidly and with less capital investment than under the
previous regime.

The changes to the legislation announced by the State demonstrate a strong
commitment to the viability and growth of the upstream exploration and
production sector and signal an acknowledgement that many operators have
struggled to meet their current exploration and development commitments owing to
regulatory requirements and challenging capital markets where funding has been
restricted.

ABOUT CHELSEA OIL & GAS LTD.

Chelsea Oil & Gas is an Australian focused exploration, development and
production company with 5.2 million net acres of land onshore Australia. Chelsea
has a portfolio of assets which include 6 existing oil and 1 gas discovery with
independently evaluated reserves, a fully carried seismic and drilling programme
in a proven exploration play, and significant resource potential in two emerging
unconventional plays offsetting supermajors who have committed to invest up to
A$545 million in the next 3 years on immediately offsetting lands.

FORWARD LOOKING STATEMENTS

This press release contains information that constitutes "forward-looking
information" or "forward-looking statements" (collectively "FORWARD-LOOKING
INFORMATION") within the meaning of applicable securities legislation. This
forward-looking information includes, among others, statements regarding: the
ability to amend existing development plans, the process for applying for new
PLs, estimated reserves and other expectations, beliefs, plans, goals,
objectives, assumptions, information and statements about possible future
events, conditions, results of operations or performance. Information regarding
business plans generally assumes that the extraction of crude oil, natural gas
and natural gas liquids remains economic.

Undue reliance should not be placed on forward looking information. Forward
looking information is based on current expectations, estimates and projections
that involve a number of risks which could cause actual results to vary and in
some instances to differ materially from those anticipated by Chelsea and
described in the forward looking information contained in this press release or
otherwise. The material risk factors include, but are not limited to: the risks
of the oil and gas industry, such as operational risks in exploring for,
developing and producing crude oil and natural gas, reduced commodity prices and
market demand and unpredictable facilities outages; risk and uncertainties
involving geology of oil and gas deposits; uncertainty related to securing
sufficient egress and markets to meet shale gas production; the uncertainty of
reserves, resources and ultimate recovery estimates, and underlying risks
related to the novelty of industry and Company understanding of reservoirs of
the nature of the reservoirs the Company is exploiting and plans to exploit; the
new and rapidly evolving technology used to exploit those reservoirs, the
uncertainty of estimates and projections relating to production, costs and



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expenses (which in many cases are of necessity based on extrapolations of short
term performance); potential delays or changes in plans with respect to
exploration or development projects or capital expenditures; fluctuations in oil
and gas prices, interest rates; health, safety and environmental risks; changes
in general economic and business conditions; the possibility that government
policies or laws may change or governmental approvals may be delayed or withheld
and the possibility that third parties may interfere with the Company conducting
its business. The foregoing list of risk factors is not exhaustive. Forward
looking information is based on the estimates and opinions of the Company's
management at the time the information is presented. The Company assumes no
obligation to update forward looking information should circumstances or
management's estimates or opinions change, except as required by law.

Statements contained in this press release and corporate information relating to
future results, events and expectations are forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934, as amended. These forward-looking
statements involve known and unknown risks, uncertainties, scheduling,
re-scheduling and other factors which may cause the actual results, performance,
estimates, projections, resource potential and/or reserves, interpretations,
prognoses, schedules or achievements of the Corporation, or industry results, to
be materially different from any future results, performance or achievements
expressed or implied by such statements. Such factors include, among others,
those described in the Corporation's annual reports on Form 20-F on file with
the U.S. Securities and Exchange Commission.

BARRELS OF OIL EQUIVALENT

The term barrels of oil equivalent ("BOE") may be misleading, particularly if
used in isolation. Per boe amounts have been calculated using a conversion ratio
of six thousand cubic feet of natural gas (6 mcf) to one barrel of oil (1 bbl).
This boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not represent
a value equivalency at the wellhead. Given that the value ratio based on the
current price of crude oil as compared to natural gas is significantly different
from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.

RESERVES DATA

The determination of oil and natural gas reserves involves the preparation of
estimates that have an inherent degree of associated uncertainty. Categories of
proved and probable reserves have been established to reflect the level of these
uncertainties and to provide an indication of the probability of recovery. The
estimation and classification of reserves requires the application of
professional judgment combined with geological and engineering knowledge to
assess whether or not specific reserves classification criteria have been
satisfied. Knowledge of concepts including uncertainty and risk, probability and
statistics, and deterministic and probabilistic estimation methods is required
to properly use and apply reserves definitions.

The recovery and reserve estimates of oil, NGL and natural gas reserves provided
herein are estimates only. Actual reserves may be greater than or less than the
estimates provided herein. The estimated future net revenue from the production
of Chelsea's natural gas and petroleum reserves does not represent the fair
market value of Chelsea's reserves.

For full details of Chelsea's reserves, please see Chelsea's AIF available at
www.sedar.com.

We seek safe harbor.


FOR FURTHER INFORMATION CONTACT:
CHELSEA OIL & GAS LTD.
+1 (403) 457-1959
www.chelseaoilandgas.com