Drake Pacific Enterprises Ltd.
TSX VENTURE : DPE

Drake Pacific Enterprises Ltd.

February 24, 2009 13:31 ET

Drake Pacific Operational Update: DPE Production Exceeds 300 Boed

CALGARY, ALBERTA--(Marketwire - Feb. 24, 2009) -

Operations Update: Sousa

Drake Pacific Enterprises Ltd. ("DPE" or "the Company") (TSX VENTURE:DPE) announces its recent success acquiring the rights to two new key sections in the Sousa area. Both sections have new drilling locations and will add to the company's multi-year inventory of drilling locations for oil & gas, as well as several work-overs planned for the existing shallow gas wells currently shut in.

Operations Update: Carmangay

The Company and its partners completed the enhanced recovery program (waterflood) and the gas gathering system at Carmangay in Q4, 2008. DPE's interest in the area now produces approximately 45 Bbld of sweet oil and 35 Mcfd of natural gas (net to DPE). An additional drilling location is planned for this summer 2009 and will be supported by the existing enhanced recovery program.

Acquisition:

The Company has completed the acquisition of additional working interest in several producing wells that the company operates. This acquisition added approximately 12 Boed (90% gas) for the purchase price of $250,000.

Operations Update: 300 Boed

Total production for the Company has exceeded 300 Boed. With the successful reactivation of its Sousa production, the drilling of a new gas well at Sousa, and some minor acquisitions, the company was able to increase production from under 200 Boed at year end to over 300 Boed by mid February 2009. Production is expected to reach 350 Boed when the downspacing application is approved to allow simultaneous production from the 13-12 and the new 11-12 wells at Sousa.

Despite the fact that delays, weather and other operational challenges held off the reactivation of the production at Sousa, one of the company's key areas, months longer than expected, successful drills at Carmangay, Retlaw, and Sousa in the last two quarters have enabled the company to grow its production and meet its aggressive growth targets.

"We are now realizing the benefits of the careful planning and hard work over the past few quarters. We are continuing to build on our successes and capitalize on unique new opportunities created by the current economic conditions." said Drake president, Mr. Roger Penner.

Drake Pacific Enterprises Ltd. is active in oil and gas exploration and development throughout Alberta and Saskatchewan. 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 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Drake Pacific Enterprises Ltd.
    Neil Orr
    V.P. Operations and Business Development
    Email: norr@drakepacific.com