Friday, February 28, 2014

Daybreak Oil and Gas, Inc. Announces Initial Production Rates on the Gerald Grove H-4 and H-5 Oil Wells in Kentucky

SPOKANE, WA – via eTeligis - Daybreak Oil and Gas, Inc. (OTCQB: DBRM) ("Daybreak" or the "Company"), a Washington corporation, is pleased to announce that the Gerald Grove H-4 and H-5 wells in Lawrence County, Kentucky, were placed on production on February 18, 2014. Each well is estimated to be producing 260 barrels of oil per day; however, the wells are being produced at a limited rate until de-bottlenecking infrastructure is completed in order to accommodate the sale of the associated natural gas produced along with the oil production.

 

James F. Westmoreland, President and Chief Executive Officer, commented, "We expect to complete the installation of a six inch gas pipeline and compressor in the field next week. This will allow us to gather and compress the natural gas that we are expecting to produce and sell with our current and future oil production. Due to the increased amount of natural gas being produced with our oil production, we have been unable to produce all of our wells as efficiently as possible. This new gathering line and compressor will alleviate that condition and will allow us to produce these oil wells on a 24 hour basis.

 

"We also expect to begin a 20-well drilling program during the 2014 - 2015 fiscal year with initiation of the first four oil wells. A drilling rig is expected to arrive on the first location around March 15, 2014."

 

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. Daybreak owns a 3-D seismic survey that encompasses 20,000 acres over 32 square miles with approximately 13,000 acres under lease in the San Joaquin Valley of California. The Company operates production from 20 wells in our East Slopes project area, Kern County, California. Daybreak also owns a 25% working interest in approximately 6,400 acres under lease in the Appalachian Basin in Lawrence County, Kentucky; where, we have recently participated in the drilling and completion of 5 producing oil wells in the Twin Bottoms field.

 

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 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.

 



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