Drake Pacific Enterprises Ltd.

Drake Pacific Enterprises Ltd.

November 27, 2007 17:36 ET

Successful Drilling & Acquisitions Leads to Reserve Growth for Drake

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2007) - Drake Pacific Enterprises Ltd. (TSX VENTURE:DPE):

"An ongoing, successful drilling program at Carmangay in southern Alberta, together with the acquisition of an increased working interest at Enchant, southern Alberta, has significantly increased Drake's production and reserves" says Drake Pacific Enterprises Ltd.

The company said it determined that the early 2007 drilling successes were sufficiently material to warrant an update to its Carmangay reserves evaluation by independent engineers, Martin & Brusset Associates who prepared an evaluation at September 30, 2007.

Since December 31, 2006, Drake has increased its Proven Developed Producing Reserves (NPV 10%) by 27% from $2,727,000 to $3,469,000. Total reserves (NPV 10%) rose by 39%, increasing from $3,559,000 to $4,930,000.

Not included in these updated reserve numbers are further additions from a recently drilled gas well at Gilby, producing 75 mcfd (net 50%) and another tied-in gas well at Provost producing 150 mcfd (net 100%). Both of these projects were completed under-budget.

Drake has had a 100% drilling success rate at Carmangay and Gilby this year and plans an aggressive program this winter with possible new drills at Carmangay (oil), Swan Hills (oil), Retlaw (oil and Sousa (oil and gas).

"Our recent drilling successes and increase in reserves are right on track with our aggressive growth targets this year" said Drake president, Roger Penner.

As of this writing, Drake's production is 165 Boed, up from last quarter at 107 Boed. Drake's NAV per share is calculated to be $0.43/share based on NPV 10%. These calculations assume a land value of $450,000, working capital of $110,000, bank debt of $1,010,000 and common shares outstanding of 10.6 million.

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

Contact Information

  • Drake Pacific Enterprises Ltd.
    Roger Penner
    (403) 263-2173
    (403) 263-8254 (FAX)
    Email: penner@drakepacific.com