Daybreak O&G Discovers Additional Oil Pay at Ca. Prospect

Daybreak O&G announced a new oil discovery at its Dyer Creek Prospect in the East Slopes Project located in Kern County, California. The Dyer Creek 67X-11 well was drilled to 2,294 feet and encountered approximately 10 feet of oil pay in the Vedder sand at 2,284 feet. Production casing has been set and the Company is completing the well. The well will be produced into the Dyer Creek production facility, where an existing tank battery is already in place and has been refurbished. The Company expects to have the Dyer Creek 67X-11 well on production within the next 10 days. The Company has identified three additional development locations on this prospect. Daybreak has a 41.67% working interest in the well.

James F. Westmoreland, President and Chief Executive Officer, stated, "The successful drilling of our Dyer Creek Prospect and the recently announced Ball discovery have resulted in Daybreak opening up a new area of operations approximately one mile north of our Sunday and Bear operations. Since both of these prospects were successful, we now have a significant development project with up to nine additional wells to be drilled in the Dyer Creek and Ball areas."