Drake Energy Ltd.

May 06, 2010 13:34 ET

Drake Energy Ltd. Announces Filing of 2009 Year-End Reserves Disclosure Documents

CALGARY, ALBERTA--(Marketwire - May 6, 2010) - Drake Energy Ltd. (TSX VENTURE:DPE) announces the filing of its 2009 year end reports relating to reserves data and other oil and gas information required pursuant to section 2.1 of Canadian Securities Administrators' National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. Copies of these reports are available on the SEDAR website at www.sedar.com.

The 2009 year end reserves report and subsequent March, 2010 update were prepared by Sproule & Associates. The following table summarizes the December 2008, 2009 and March 2010 update reports:

               Total Proved   Total Proved plus Probable
      000's barrels      
    $MM of oil   $MM 000's barrels of
  @10% NPV equivalent    @10% NPV oil equivalent
December 31 2008 $ 10.4 497    $ 15.0 744
December 31 2009 $ 7.7 436    $ 11.8 660
March 31 2010 (Note) $ 9.6 485    $ 14.0 755


Drake had an update of reserves prepared to March 31 2010 to reflect the impact of the winter drilling and optimization projects.

Drake Energy Ltd. is active in oil and gas exploration and development in Alberta. Headquartered in Calgary, Alberta, Canada, the Company is publicly traded on the Toronto Stock Exchange Venture Board under the stock symbol DPE.V.

This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein. Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.

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.

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