Drake Pacific Enterprises Ltd.

Drake Pacific Enterprises Ltd.

February 18, 2009 14:00 ET

Drake Pacific Operational Update: Sousa Reactivated

CALGARY, ALBERTA--(Marketwire - Feb. 18, 2009) -

Operations Update: Sousa

Drake Pacific Enterprises Ltd. (TSX VENTURE:DPE) ("DPE" or "the Company") announces that it has successfully completed its infrastructure project and reactivated its main Sousa production. Total production from the reactivated wells (13-12 and 09-02) at Sousa is approximately 720 Mcfd and 36 Bbld. (156 Boed, Net to DPE is 74 Boed, 80% gas).

The Company has also successfully drilled, completed and tied-in a new natural gas well (11-12) at Sousa. Initial production from the well was over 730 Mcfd (121 Boed, Net to DPE 62 Boed). The company will be making applications for the new well to qualify as a transitional royalty well and as such would be subject to a substantially lower royalty over the next 5 years. The company will also be applying for downspacing in the area to produce both the existing 13-12 and new 11-12 well concurrently.

The company's core area of Sousa is located in Northern Alberta near the town of High Level. DPE has significant working interest (Avg. 62%) in over 40 sections and all the production, drilling and facilities are operated by the company. With the acceptance of the downspacing application, total production in the Sousa area will be approximately 277 Boed. (Net to DPE is 136 Boed, 90% gas).

The company has a multi-year inventory of drilling locations for oil and gas. There are also several work-overs planned for the existing shallow gas wells currently shut in.

Mr. Barry Reid, VP of Operations has left the company to pursue other opportunities. Mr. Neil Orr has assumed the duties of VP Operations for the interim.

"These challenging and uncertain times are creating many new opportunities for us. We are capitalizing on these opportunities and pushing ahead with our aggressive growth plans via acquisitions and the drill bit." 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.

Neither TSX Venture Exchange nor its regulation services provider accepts responsibility for the adequacy and accuracy of this release.

Contact Information

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