Daybreak Updates California Drilling Operations
Inc. (OTC Bulletin Board: DBRM) (“Daybreak” or the “Company”), a Washington
Corporation, began drilling operations in
Project in the
Slopes Project is comprised of approximately 35 square miles of oil and gas
leases in the
working interest in approximately 19,000 acres contributed by Daybreak and its
partners, by funding the 35 square mile 3-D seismic survey. Daybreak and its
partners will earn a 50% working interest, in approximately 3,500 acres
contributed from Chevron, by funding the drilling of the four initial
exploratory wells. To date, three earning wells have been drilled by Daybreak
and its partners, the results which are reported below. One well remains to
be drilled to complete the earning of the Chevron acreage.
Sunday # 1 Well
The Sunday # 1 well, the initial well in the program, was completed for
production in
barrels of oil per day on pump. Production may be increased in the future
depending upon reservoir performance. Further evaluation of this reservoir is
being performed and additional off-setting wells will likely be drilled in the
future.
The
hydrocarbons were found in the well bore, and the well was plugged and
abandoned. This well may be considered for a re-entry at a later date pending
a reinterpretation of the 3-D Seismic data.
Piute # 1 Well
The Piute # 1 well began drilling in
difficulties were encountered during the initial drilling of the well, and a
portion of the drill string was lost in the hole. The well was re-entered in
well bore, and the well was plugged and abandoned.
Bear # 1 Well
The Bear # 1 is the last of the four-well commitment that the Company and
its partners must drill to earn into the Chevron acreage. This prospect is
highly-ranked in the prospect portfolio but required additional time to secure
necessary regulatory approvals. The Company and its partners have received
the final environmental permits required to obtain a drilling permit.
Location work has begun and is expected to be completed during the second week
in
location and begin drilling immediately following the completion of the
location.
Future Drilling Plans
The Company and its partners continue to evaluate the 35 square mile 3-D
seismic data in light of the past results and have identified a number of
future drilling locations within the East Slopes Prospect area. The locations
will continue to target the Vedder sands and shallower horizons.
are very encouraged by the early success of the exploration drilling program
with the discovery at the Sunday Prospect. The ability to quickly move from
exploratory drilling to a producing asset validates the Company’s East Slopes
business model of exploring in a proved productive area where existing
infrastructure and markets are well-established. All three wells encountered
excellent quality sandstone reservoirs and we are confident that the 3-D
survey will afford the opportunity to identify additional exploration drilling
prospects. Daybreak looks forward to beginning the drilling operation at the
Bear Prospect in the coming weeks.”
Daybreak Oil and Gas, Inc. is an independent oil and gas company engaged
in the exploration, development and production of oil and gas. The Company
holds projects in
For more information about Daybreak Oil and Gas Inc., please visit its
website at http://www.daybreakoilandgas.com.
“Safe Harbor” Statement under Private Securities Litigation Reform Act of
1995: Certain statements contained herein constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act
of 1995. Information contained herein contains “forward-looking statements”
which can be identified by the use of forward-looking terminology such as
“believe,” “expect,” “may,” “should,” “up to,” “approximately,” “likely,” or
“anticipates” or the negative thereof or given that the future results covered
by such forward looking statements will be achieved. Such forward-looking
statements involve a number of known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
of the Company to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements.
SOURCE Daybreak Oil and Gas, Inc.