Daybreak Starts Drilling and Testing in Louisiana

Daybreak Oil and Gas Inc. announced that over the past week a drilling rig was contracted and moved on location in Tensas Parish, Louisiana, to spud the Tensas Farms et al F-2 well. Drilling is now under way at a current depth of 3,875 feet.

This well is located approximately 3/4 of a mile south of the F-1 discovery and will be drilled to a total depth of approximately 8,300 feet. The primary objective of the F-2 well is to test the oil leg of the Basal Tuscaloosa Formation that Daybreak encountered in each of the initial three wells drilled in this field; and which has been productive in both the F-1 and F-3 wells.

Also, Daybreak reports that the A-1 well, located approximately three miles northwest of the F-2, is scheduled to be production-tested this week following final hook-up of the surface facilities. Completion equipment and down-hole perforating guns have previously been installed.

The current F-2 well is the fifth in the company's Basal Tuscaloosa play and is located within Daybreak's leasehold of more than 20,000 acres in Tensas and Franklin Parishes. The targets for drilling are based on a 55,000-acre 3-D seismic survey which encompasses the entire leasehold area.

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