SPOKANE, Wash., Dec. 20 /PRNewswire-FirstCall/ -- Daybreak Oil and Gas, Inc. (BULLETIN BOARD: DBRM) (Daybreak or the Company) a Washington Corporation, is pleased to announce that the Tensas Farms et al "A-1" well located in Tensas Parish, Louisiana, has been successfully tested, completed, and placed on production. Completed on December 5, perforations of the Basal Tuscaloosa Formation over the gross interval 8,094 feet -- 8,108 feet yielded initial flow rates of 245,000 cubic feet of gas per day and 63 barrels of oil per day (39 degree API); flowing tubing pressure was 2150# on a 6/64" choke. On December 20, the daily production rate was gauged at 168 barrels of oil and 496,000 cubic feet of gas, on a 9/64" choke and 1850# flowing tubing pressure. Plans are to flow the well at variable rates to determine the appropriate stabilized rate for long-term production. Surface facilities were previously installed and the well is currently flowing to sales. Daybreak is the Operator of this project and controls pipeline infrastructure in the immediate area for hookup into local sales lines.
The well was spudded on August 27, and drilled to total depth of 8,200 feet on September 19, 2007. Open-hole well logs and side wall core data indicated a potential oil pay interval in the target zone and facilities were installed in preparation for production testing. The "A-1" is located approximately 2 miles northwest of the Tensas Farms et al "F-1" discovery well, which was completed and placed on production in 2006. Daybreak has a 28.5% working interest in the well before payout, increasing to 34.75% after payout.
The current well was the fourth in Daybreak's Basal Tuscaloosa play and is located within the Company's leasehold of over 20,000 acres in Tensas and Franklin Parishes. The targets for drilling are based on a 55,000 acre 3-D seismic survey which encompasses the entire leasehold area.
In related news, the Tensas Farms et al "F-2" well, which was recently drilled to a final total depth of 8,310 feet, is being prepared for testing. This well is located approximately three miles southeast of the 'A-1" well (3/4 miles south of the "F-1" field discovery). The primary objective of the "F-2" well was to test the oil leg of the Basal Tuscaloosa Formation that Daybreak encountered in each of the initial four wells drilled in this field; and which has been productive in the "A-1", "F-1" and "F-3" wells. The surface location for this well was constructed; and, conductor casing was set in September of this year. Drilling began on November 25, 2007 and final total depth was reached on December 1, 2007. A workover-completion rig is on location and production testing is expected to begin soon.
For more information about Daybreak Oil and Gas Inc., please visit its website at http://www.daybreakoilandgas.com/.
Contact:
Tim Lindsey Telephone: 281-253-4576
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"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.
