Derek Oil & Gas Corporation

Derek Oil & Gas Corporation

April 24, 2007 08:30 ET

Derek Oil & Gas Corporation Reports Successful Drilling on LAK Ranch Project & Approval on Steaming Permits

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 24, 2007) - Derek Oil & Gas Corporation (TSX VENTURE:DRK) is pleased to announce that it has successfully finished drilling, casing and cementing all twelve wells of its current development program at their LAK Ranch project. In addition, the Wyoming Oil & Gas Conservation Commission ("WOGCC") has approved permits for temporary injection into the eight producer wells (for up to three weeks of injection) and for permanent injection into the four injection wells.

Temporary steam injection into the eight producer wells will serve to stimulate oil flow towards the individual producers and could ultimately shorten the time it takes to achieve production after permanent injection of steam is initiated. The completion of the wells, including perforation and installation of wellheads is in progress and facilities work, including tie-in of electrical and production lines and procurement of pumping units is underway. Open hole logs have been run on all wells and a sonic log was run on the last (deeper) well. The rock velocity information from this sonic log will be input into Derek's 3D seismic database to refine the 3D seismic survey using the most current information.

The completed 12 vertical well program totaled a depth of approximately 13,540 feet. The program consists of a pattern of four injector and eight producer wells targeted to produce from the Newcastle sandstone formation. Well placements were selected based on targets identified using Derek's $1.1 million USD, high definition 3D seismic survey completed over 2880 acres (4 1/2 square miles) of the 8000 plus acre LAK Ranch property. Within the program area, the pay zone is estimated to be 40 to 70 feet thick.

This 12 well program is being conducted jointly with a third party on a fifty-fifty cost basis, with the third party receiving fifty percent of the revenue until payback on their initial investment is met. Once payback is met, the third party's revenue interest (only on the 12 well program production) will revert to forty percent. Derek will have a 95% working interest in any current and future development and production on the property outside this 12 well program area.

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 prolific Powder River Basin.

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


Mr. Barry C.J. Ehrl, President and C.E.O.

This document includes forward-looking statements. Forward-looking statements include, but are not limited to, the continued advancement of Derek Oil & Gas Corporation'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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