SPOKANE, WA(Eteligis Inc.)
SPOKANE, WA, United States, via ETELIGIS INC., 10/10/2014 - -
Daybreak Oil and Gas, Inc. (OTCQB: DBRM) ("Daybreak" or the
"Company"), a Washington corporation, is pleased to provide an
update on its operations in Kentucky and California. On October 10,
2014 the Company filed its quarterly report on Form 10-Q with the
Securities and Exchange Commission for the period ended August 31,
2014. Portions of its previously disclosed financial and operating
results are summarized in this release.
Kentucky Operations
The Jackson H-20 ("H-20") oil well was recently drilled to a
measured depth of 3,978 feet. Logs and other measurement data
indicate that the horizontal section of the wellbore encountered
2,585 feet of oil-bearing sandstone. The Dwight Dillon H-22
("H-22") oil well has also recently been drilled to a measured
depth of 4,646 feet. Logs and other measurement data indicate that
the horizontal section of the wellbore encountered 3,054 feet of
oil-bearing sandstone. The drilling rig has been released; however,
two more wells are planned to be drilled before the end of the
calendar year. The H-22 and the H-20 oil wells are scheduled to be
hydraulically fractured on or around October 14th and 21st,
respectively.
The Raymond Lyons H-23 ("H-23") and Raymond Lyons H-24 ("H-24")
oil wells which were previously reported on, have now been
successfully hydraulically fractured. A completion rig is now at
that location completing these wells, and they are expected to be
put on production by the end of October 2014. Construction of the
central production facility which will service the H-20, H-22,
H-23, and H-24 oil wells, as well as future wells in the area has
started. The Dwight Dillon H-22 and the Jackson H-20 wells are
expected to be put on production by the middle of November
2014.
In Kentucky, Daybreak had net production for the quarter ended
August 31, 2014 of 7,202 barrels of oil equivalent ("BOE"),
compared to 4,179 BOE for the quarter ended May 31, 2014. There are
currently nine wells on production and four wells awaiting
completion and production facilities.
California Operations
In California, Daybreak had net production for the quarter ended
August 31, 2014 of 4,066 BOE from the Company's existing 20 oil
wells compared to 4,463 BOE for the quarter ended May 31, 2014. The
Company is planning to drill additional development wells in at
least four of its producing pools on the Black, Bear, Dyer Creek
and Ball properties and two wells to explore for new reserves in
the southern portion of our acreage position. The Company has
applied for four new drilling permits which we anticipate to be
issued within the next 45 days. This permitting process has taken
longer than anticipated due to additional documentation
requirements by state and local agencies. The Company plans to
drill three wells this fall and an additional three wells this
winter. At least one of these wells will be an exploratory well in
a new prospective area.
Financial Results
For the second quarter ended August 31, 2014, the Company
reported net income of $81,052. The table below contains selected
key operational statistics.
*Bbl. One barrel, or 42 U.S. gallons of liquid volume.
James F. Westmoreland, Chairman, President and Chief Executive
Officer, commented, "We have steadily and successfully been
executing our strategy of developing low-cost shallow oil reserves
and as a result, the Company has posted its first quarterly net
profit. Our property in Kentucky has been fueling our growth while
our property in California has been providing a steady base of
production, which in part has fueled our growth as well. We
carefully manage our production and administrative operations and
as a result, our operating cost remains very low. The results are
now speaking for themselves as we continue to execute this
strategy."
Daybreak Oil and Gas, Inc. is an independent oil and gas company
currently engaged in the exploration, development and production of
oil and gas in California and Kentucky. The Company is
headquartered in Spokane, Washington, with an operations office in
Friendswood, Texas. We own a 3-D seismic survey that encompasses
20,000 acres over 32 square miles with approximately 6,500 acres
under lease in the San Joaquin Valley of California. Daybreak
operates production from 20 wells in our East Slopes project area,
Kern County, California. We also own an average 25% working
interest in nine producing horizontal oil wells and have
approximately 7,300 acres under lease in the Appalachian Basin in
Lawrence County, Kentucky.
More information about Daybreak Oil and Gas, Inc. can be found
at www.daybreakoilandgas.com.
Certain statements contained in this press release constitute
"forward-looking statements" as defined by the Securities and
Exchange Commission. Such statements 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. 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: 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 Twin Bottom Field Project and 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.
CONTACT:
Ed Capko
Telephone: 815-942-2581
Investor Relations Email: edc@daybreakoilandgas.com
SOURCE: Daybreak Oil and Gas, Inc.
Associated Documentation:
http://www.eteligis.com/ViewSubmission.aspx?submissionRequest=28116
- Link to submission on http://www.eteligis.com
http://www.eteligis.com/FileHandler.aspx?submissionRequest=28116&documentRequest=18646
- 03044110102014-75138455DBRM_10-10-2014_KAH_ETL.001.png
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