Daybreak Oil and Gas Inc. (OTC: DBRM) drilled its third consecutive successful oil well in the recently-acquired Twin Bottoms Field Project in Lawrence County, Ky.
The Dwight Dillon H-6 well was drilled to a measured depth of 5,100 feet and a true vertical depth of 1,442 feet. Logs and other measurement data indicate that the horizontal section of the well bore encountered 3,546 feet of oil-bearing sandstone. The well will be hydraulically fractured the last week in October and will be put on production soon thereafter. In addition, the recently-drilled Gerald Grove H-3 well, the second well, will be hydraulically fractured the first week in November and put on production when production facilities are in place.
The previously announced Gerald Grove H-1 well, the first well in a multi-well program, has now been completed and is currently in production testing. In the first 58 hours of testing, the well produced 668 barrels of oil and 100 thousand cubic feet (Mcf) of gas. The well will be making flush production for the first couple of weeks. Further testing will determine a stabilized production rate per day. The stabilized daily production rates on this, and all the future wells will be reported as they occur. A drilling rig will be on location by mid-November to drill three additional wells in the Twin Bottoms field. The company owns a 25% working interest in the Twin Bottoms Field.
East Slopes Project - California
The company confirmed plans to drill the Bear #8, Bear #9 and Bear #10 development oil wells during the upcoming fall drilling program at its East Slopes Project in Kern County, Calif., to begin the last week in October.
"We are extremely pleased with the initial results from our Kentucky project. With approximately 50 locations yet to be drilled, we believe that this project will take Daybreak to the next level as a company. As we build the company, we will continue to evaluate other opportunities that fit our business model, which is to find and develop shallow oil reserves that are inexpensive to drill and produce, and that will provide a good return for the company and its shareholders," James F. Westmoreland, president and CEO, said in the release.
Daybreak Oil and Gas Inc. is an independent oil and natural gas exploration, development, and production company in the U.S. The company is headquartered in Spokane, Wash., with an operations office in Friendswood, Texas.