Derek Oil & Gas Corporation

Derek Oil & Gas Corporation

August 28, 2006 14:09 ET

Derek Announces U.S. Securities Deregistration

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 28, 2006) - Derek Oil & Gas Corporation ("Derek") (TSX VENTURE:DRK) today reported voluntary deregistration from the United States Security and Exchange Commission ("SEC"). This step was taken on advice of the Company's audit committee in consultation with its auditors. The audit committee concluded that additional costs of complying with Sarbanes-Oxley ("SOX") would be in excess of $200,000 annually and that Derek did not receive sufficient benefit from its OTC-BB quotation services to incur this level of ongoing costs for SOX compliance.

The deregistration application was accepted for filing on Thursday, August 24, 2006. Upon acceptance of its deregistration, the Company was no longer eligible to be quoted on the OTC-BB and was de-listed from that quotation service on Monday, August 28. 2006. To our shareholders currently trading through the OTC-BB we apologize for any inconvenience. However, please note the company continues to trade on the Toronto Venture Exchange with the symbol DRK.

Derek Oil & Gas Corporation is a Canadian based, publicly traded oil exploration, development and production company that utilizes enhanced oil recovery (EOR) techniques to develop new production from reservoirs in North America. Derek's current focus is on the further development and increasing production from their prime property located in NE Wyoming's Powder River Basin.

Derek Oil & Gas Corporation is trading in Canada on the TSX Venture Exchange with the symbol DRK.


Barry C.J. Ehrl, President & CEO

This document includes forward-looking statements. Forwar-looking statements include, but are not limited to, the continued advancement of Derek Oil and Gas's LAK Ranch project. When used in this document, the words "potential", "plan", "could", "estimate", "expect", "intend", "may", "should", and similar expressions are intended to be among the statements that identify forward-looking statements. Although Derek believes that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that Derek's LAK Ranch project will experience technological and mechanical problems, geological conditions in the reservoir may not result in commercial levels of oil and gas production, and other risks.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

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