Drake Energy Ltd.

May 21, 2010 11:29 ET

Drake Appoints Receiver

CALGARY, ALBERTA--(Marketwire - May 21, 2010) - Drake Energy Ltd. (TSX VENTURE:DPE) ("Drake") announces that the Canadian Western Bank (the "Bank") has served Drake with notice demanding payment of its outstanding indebtedness to the Bank in the amount of approximately $4,000,000 and of the Bank's intention to enforce its security pursuant to the Bankruptcy and Insolvency Act.

After undertaking a review of Drake's current share price, production and cash flows, debt levels and other relevant considerations, Drake's board of directors has agreed to consent to the Bank's request to appoint a receiver immediately.

Reader Advisories

Forward-Looking Statements: This news release contains certain forward-looking statements, including management's assessment of future plans and operations that involve substantial known and unknown risks, uncertainties and assumptions, certain of which are beyond Drake's control. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Drake does not undertake any obligation to update publicly or to revise any of the included forward- looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulator Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.

Contact Information