SOURCE: Daybreak Oil and Gas, Inc.

September 12, 2014 09:40 ET

Daybreak Oil and Gas, Inc. Continues Oil Well Drilling Success in Kentucky

SPOKANE, WA--(Marketwired - Sep 12, 2014) - Daybreak Oil and Gas, Inc. (OTCQB: DBRM) ("Daybreak" or the "Company"), a Washington corporation, is pleased to announce the successful drilling of its tenth and eleventh horizontal oil wells at the Twin Bottoms Field in Lawrence County, Kentucky. The Raymond Lyons H-23 ("H-23") oil well was drilled to a measured depth of 4,676 feet. Logs and other measurement data indicate that the horizontal section of the wellbore encountered 3,338 feet of oil-bearing sandstone. The Raymond Lyons H-24 ("H-24") oil well was drilled to a measured depth of 4,933 feet. Logs and other measurement data indicate that the horizontal section of the wellbore encountered 3,547 feet of oil-bearing sandstone. The H-23 and the H -24 oil wells are scheduled to be hydraulically fractured on or about September 22nd and 29th, respectively. A central production facility will be built on the joint H-23 and H-24 location to service these and future wells. Due to the rough terrain, the facility construction cannot begin until these two wells are hydraulically fractured and completed. Initial production from the H-23 and H-24 oil wells is expected to occur near the end of October 2014. Once production is established, the Company will provide an update, however; stabilized production rates will not be provided until, at least, 45 days after first production.

The drilling rig will now be moved to the Hershel Cordell H-20 location. Following the drilling of that well, the drilling rig will be moved to the Dwight Dillon H-22 location as we continue our current development program.

James F. Westmoreland, President and Chief Executive Officer, commented, "In our initial evaluation of the Twin Bottoms Field we identified 40 drilling locations. Since then, we have steadily been adding to our acreage position, and based on our past drilling results, we have now identified over 60 total drilling locations. As we continue to expand our acreage position and evaluate our drilling results, we expect to add additional drilling locations that will provide a number of years of very low-risk drilling opportunities for the Company."

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 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.

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