SPOKANE, Wash., April 23, 2013 /PRNewswire/ -- Daybreak Oil and Gas, Inc. (OTCBB: DBRM) ("Daybreak" or the "Company"), a Washington corporation, is pleased to announce the initiation of a six well drilling program at the East Slopes Project in Kern County, California, where the Company currently owns a working interest in 11 producing oil wells. As part of the long-term development plan for this project area, the Company plans to drill five development oil wells and one exploration well. Two drilling rigs will be utilized in this drilling program. The first of the rigs is currently being moved to the Bear #5 development location and should spud before the end of April, 2013. A larger rig is being contracted to drill the planned exploration well and may drill at least one of the development wells. This rig is expected to be available in the latter part of May, 2013. All of the development wells will be drilled on oil spacing units immediately adjacent to producing wells operated by Daybreak; and, all six drilling locations have been fully permitted by the State of California.
Daybreak plans to drill three development wells in the currently producing Vedder oil reservoir. The Company has already constructed the drilling locations, laid the production flow lines, and installed the electrical service. Two more potential locations have been identified for possible future drilling based on performance from these three wells. The Company will own a 37.5% working interest in each of these development wells.
The Company plans to drill one development oil well in the currently producing Vedder reservoir. The location has been constructed and is ready for the drilling rig. Daybreak will own a 33.75% working interest in this development well.
The Company plans to drill one development well in the currently producing Vedder oil reservoir. Additional wells may be drilled at a later date. The Company owns a 37.5% working interest in this well location.
As part of the ongoing exploration program, the Company also plans to drill an exploration well to approximately 4,000 feet at the Chimney Prospect. The proposed well, which will test the Vedder and the deeper Eocene sands, is located on a prospect identified using the extensive 3D seismic coverage . This well location is in the central portion of the Company's leasehold acreage position, in the southern San Joaquin Basin.
James. F. Westmoreland, President and Chief Executive Officer, commented "We are very pleased to undertake this multi-well development program at East Slopes. Since we already have the field infrastructure in place, the five development oil wells should generate new cash flow as soon as the wells are completed. The Chimney exploration well, if successful, will open up a new area for our future expansion as we continue to develop our proven acreage."
Daybreak Oil and Gas, Inc. is an independent oil and gas company engaged in the exploration, development and production of oil and gas in California. The Company is headquartered in Spokane, Washington with an operations office in Friendswood, Texas. Daybreak owns a 3-D seismic survey that encompasses over 20,000 acres over 32 square miles with approximately 13,000 acres under lease in the San Joaquin Valley of California.
For more information about Daybreak Oil and Gas, Inc., please visit the Company's website at www.daybreakoilandgas.com.
Ed Capko Telephone: 815-942-2581
Investor Relations Email: [email protected]
"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. These forward-looking statements are based on our current expectations, assumptions, estimates and projections for the future of our business and our industry and are not statements of historical fact. Such forward-looking statements include, but are not limited to, statements about our expectations regarding our financing, our future operating results, our future capital expenditures, our expansion and growth of operations and our future investments in and acquisitions of oil and natural gas properties. We have based these forward-looking statements on assumptions and analyses made in light of our experience and our perception of historical trends, current conditions, and expected future developments. However, you should be aware that these forward-looking statements are only our predictions and we cannot guarantee any such outcomes. Future events and actual results may differ materially from the results set forth in or implied in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: failure to negotiate and enter into a Loan as well as receive any funds; general economic and business conditions; exposure to market risks in our financial instruments; fluctuations in worldwide prices and demand for oil and natural gas; fluctuations in the levels of our oil and natural gas exploration and development activities; our ability to find, acquire and develop oil and gas properties, including the ability to develop the East Slopes Project prospects; risks associated with oil and natural gas exploration and development activities; competition for raw materials and customers in the oil and natural gas industry; technological changes and developments in the oil and natural gas industry; legislative and regulatory uncertainties, including proposed changes to federal tax law and climate change legislation, and potential environmental liabilities; our ability to continue as a going concern; and our ability to secure additional capital to fund operations. Additional factors that may affect future results are contained in our filings with the Securities and Exchange Commission ("SEC") and are available at the SEC's web site http://www.sec.gov. Daybreak Oil and Gas Inc. disclaims any obligation to update and revise statements contained in this press release based on new information or otherwise.
SOURCE Daybreak Oil and Gas, Inc.