Daybreak Commences Production on Gerald Grove H-4 and H-5 Wells

Source: www.gulfoilandgas.com 2/28/2014, Location: North America

Daybreak Oil and Gas, Inc, a Washington corporation, is pleased to announce that the Gerald Grove H-4 and H-5 wells in Lawrence County, Kentucky, were placed on production on February 18, 2014. Each well is estimated to be producing 260 barrels of oil per day; however, the wells are being produced at a limited rate until de-bottlenecking infrastructure is completed in order to accommodate the sale of the associated natural gas produced along with the oil production.

James F. Westmoreland, President and Chief Executive Officer, commented, “We expect to complete the installation of a six inch gas pipeline and compressor in the field next week. This will allow us to gather and compress the natural gas that we are expecting to produce and sell with our current and future oil production. Due to the increased amount of natural gas being produced with our oil production, we have been unable to produce all of our wells as efficiently as possible. This new gathering line and compressor will alleviate that condition and will allow us to produce these oil wells on a 24 hour basis.

We also expect to begin a 20-well drilling program during the 2014 – 2015 fiscal year with initiation of the first four oil wells. A drilling rig is expected to arrive on the first location around March 15, 2014.”


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