The first of these wells, the Gerald Grove H-7 well, was spud on March 19, 2014. The company and the operator App Energy plan to subsequently drill the Gerald Grove H-8, H-9 and H-10 wells.
At the completion of the fourth well, the rig will be released to a nearby operator whereby that company will use the rig to drill four wells. At the end of the four-well drilling cycle, Daybreak and App will regain use of the rig to drill another four wells at the Twin Bottoms Field. It is planned to continue utilizing the drilling rig in a rotating manner for the remainder of this fiscal year, until the proposed 20 wells are drilled.
James Westmoreland, president and chief executive officer, commented, "The 2014-2015 fiscal year will be a transforming year for the Company and our shareholders. During the winter, we completed vital infrastructure improvements, which will allow us to more efficiently produce our oil and gas in Kentucky. This work involved the installation of a six-inch gas pipeline and natural gas compressor, as well as the construction and installation of a centralized oil storage facility. During this time, we also brought four of the five oil wells on-line that were drilled last fall.
"We expect to bring the remaining well, the Dwight Dillon H- 6, on to production next week. With the five oil wells we have already drilled in Kentucky, in addition to the 20 oil wells we expect to drill this year, along with our development plans and 20 producing wells in California, Daybreak should exit the 2014-2015 fiscal year as a significantly stronger Company with positive cash flows and earnings per share for the first time in the history of the Company."
Daybreak Oil and Gas is an independent oil and gas company currently engaged in the exploration, development and production of oil and gas in California and Kentucky. The company is headquartered in Spokane, Washington with an operations office in Friendswood, Texas.
