Daybreak Reaches TD at Tensas Farms Well

Daybreak Oil and Gas says that the Tensas Farms et al "F-2" well located in Tensas Parish, Louisiana, has been drilled to final total depth of 8,310 feet. Open-hole logging and side- wall coring operations have been completed; and, 5-1/2" completion casing has been set. A single zone in the primary objective, Basal Tuscaloosa Formation, will be perforated and tested based on encouraging log analysis and correlations to nearby wells.

This well is located approximately 3/4 miles south of the "F-1" field discovery. The primary objective of the "F-2" well was to test the oil leg of the Basal Tuscaloosa Formation that Daybreak encountered in each of the initial four wells drilled in this field; and which has been productive in both the "F-1" and "F-3" wells. Operations for the "F-2" began when the surface location was constructed and conductor casing was set in September of this year. The "F-2" was spudded on November 25, 2007.

In other news, the Company is pleased to announce that the Tensas Farms et al "A-1" well located in Tensas Parish, Louisiana, will be tested later this week depending upon local weather and lease-road conditions which have caused delays in workover-rig movement. Open-hole well logs and side-wall core data indicated a potential oil pay interval in the target Basal Tuscaloosa zone at a depth between 8,094 and 8,118 feet; mud log "shows" were observed while drilling this reservoir.

The well was spudded on August 27, and drilled to total depth of 8,200 feet on September 19, 2007. The "A-1" well had previously been cased and surface facilities were installed in preparation for production testing. The "A-1" is located approximately 2 miles northwest of the Tensas Farms et al "F- 1" discovery well, which was completed and placed on production in 2006. Daybreak has a 28.5% working interest in the well before payout, increasing to 34.75% after payout and is the Operator of this project. The Company controls pipeline infrastructure in the immediate area for hookup into local sales lines.

The "A-1" and "F-2" wells were the fourth and fifth in Daybreak's Basal Tuscaloosa play and are located within the Company's leasehold of over 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.