The first oil well, Bear #8 has been drilled to 2,250ft, which encountered around 13ft of oil pay in the Vedder Sand.

The Bear #9 well has been spud by the company, which is currently under drilling, while Bear #10 well will be the final well of the three well drilling program.

Daybreak has 37.5% working interest in the Bear wells.

Daybreak Oil and Gas president and CEO James Westmoreland said the company has successfully started the fall drilling program in California.

"Additionally we are working on obtaining the final permits to continue drilling development oil wells on our Ball property, which should happen in the spring of 2014," Westmoreland added.

Daybreak is engaged in the exploration, development and production of oil and gas in California and Kentucky.