DPE Drake Energy Ltd.

Drake Energy Ltd. (TSX VENTURE:DPE)

Production Update

Field production for the Company at the end of February exceeded 250 barrels of
oil equivalent (boed) with additional production undergoing optimization
throughout the Company. The acquisition of the remaining 25% working interest at
Sousa and the successful drilling and optimization program this winter has
enabled Drake to increase production from 130 boed at year end to the current
levels.


Sousa 01-24 Update

The re-entered 01-24 horizontal well has continued with steady production and
averaged over 70 barrels of oil a day for February (including setup and
optimization down time). Initial March volumes have been consistently at this
rate. Rate optimization and cost cutting efforts will continue on the well over
the next few months.


Sousa 13-12 Optimization Update

The optimization of the 13-12 Sousa well has been completed but short-term
pipeline shut-ins have curtailed production in February. Resumption of
production from this well was begun in mid March.


Jenner Optimization Update

The optimization of the previously shut in Jenner well was unsuccessful in the
lower zone. The upper zone re-entry is being considered for Q2.


Line of Credit Increase

The Company has successfully negotiated an increase in its credit facility from
$3.8 Million to $4.0 Million. Increased production and cost controls have
provided this increase in the level of the bank's confidence.


Direction in 2010

Despite a difficult year in the Alberta oil patch, the Company was able to
return to its peak production levels from the prior year but with much stronger
oil weighting, stronger cash flows going forward, 100% ownership of its core
area and 12 more oil prospects to pursue in the coming year. The new corporate
presentation on the website (www.drake-energy.com) has further details.


"The steps we have taken to re-activate our gas production, coupled with our
favourable gas hedging program, our focus on oil development and our strong
position to acquire undervalued assets have placed the Company in an excellent
position for growth." said Drake president, Mr. Neil Orr.


Drake Energy Ltd. is active in oil and gas exploration and development in
Alberta. Headquartered in Calgary, Alberta, Canada, the Company is publicly
traded on the Toronto Stock Exchange Venture Board under the stock symbol DPE.V.


This news release contains forward-looking information. Implicit in this
information are assumptions regarding commodity pricing, production, royalties
and expenses that, although considered reasonable by the Company at the time of
preparation, may prove to be incorrect. These forward-looking statements are
based on certain assumptions that involve a number of risks and uncertainties
and are not guarantees of future performance. Actual results could differ
materially as a result of changes in the Company's plans, commodity prices,
equipment availability, general economic, market, regulatory and business
conditions as well as production, development and operating performance and
other risks associated with oil and gas operations. There is no guarantee made
by the Company that the actual results achieved will be the same as those
forecasted herein. Barrel of oil equivalent ("boe") amounts may be misleading,
particularly if used in isolation. A boe conversion ratio has been calculated
using a conversion rate of six thousand cubic feet of natural gas to one barrel
and is based on an energy equivalent conversion method application at the burner
tip and does not necessarily represent an economic value equivalent at the
wellhead.

Drake Energy Ltd. (TSXV:DPE)
Historical Stock Chart
From Jun 2024 to Jul 2024

Drake Energy Ltd. (TSXV:DPE)
Historical Stock Chart
From Jul 2023 to Jul 2024