Drake Pacific Enterprises Ltd.

Drake Pacific Enterprises Ltd.

September 13, 2007 19:13 ET

Drake Pacific Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Sept. 13, 2007) - Drake Pacific Enterprises Ltd. ("Drake") (TSX VENTURE:DPE) is pleased to report the successful completion of the fourth oil well at Carmangay (net 31%). In the first 9 days, this well produced an average of nearly 70 bbls/d and, with pump optimization, production is expected to reach as much as 100 bbls/d.

In July, Drake Pacific Enterprises Ltd. entered into a pooling agreement with Drumlin Energy Corp., a private junior oil and gas company with extensive experience in the area. Drake's working interest diversified from one oil well at 100% to three oil wells at 31% and the new fourth well, plus two additional drilling locations. Drumlin acts as operator of the field.

Drake and its partners are planning to implement a water flood at Carmangay which will mitigate EUB rate limitations and allow optimal production from all of the wells. This is under review by the EUB and it is anticipated that we will be able to complete the operation this fall. Both the source and injector wells are in place and will be completed and tested in coming weeks.

In addition to the new well and water flood project, a gas gathering system is also being considered. With the completion of the waterflood and gas conservation projects, the production from the existing wells is expected to increase from 120 to 250 boe/d (net 78 boe/d).

As an operator, Drake will be completing the tie-in of the Provost gas well this week. Initial production is expected to exceed 200mcf/d.

Drake is also preparing to spud our Gilby gas well as soon as weather permits. Production, which should commence late in Q3, is expected to come on at approximately 220mcf/d (net 110mcf/d).

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

Contact Information

  • Drake Pacific Enterprises Ltd.
    Roger Penner
    President and Chief Executive Officer
    (403) 263-2173
    (403) 263-8254 (FAX)