Drake Pacific Enterprises Ltd.: Operational Update and Line of Credit Increase
(PressMethod) - Drake Pacific Enterprises Ltd. ("DPE" or "the Company") (TSX VENTURE:DPE - News) announces it has successfully negotiated an increase of its credit facility from $1.44 Million to $2.0 Million. The increase will supplement funding needed for the upcoming 2008 summer and winter drilling programs.
ADVERTISEMENT
Operational Update: Sousa, Alberta
As announced on May 23, 2008, Drake Pacific Enterprises Ltd. ("Drake") and its partners (Drake net W.I. 25% - 53%) have completed the reactivation of both oil and gas production wells in the Sousa area. Gross production continues to remain stable at 45 Bopd and 900 Mcf/d levels. Production is expected to level off at approximately 40 Bopd and 650 Mcf/d (net 10 Bopd and 300 Mcf/d). Enhanced production projects (workovers) continue on five existing shallow gas wells (W.I. 65%) on adjacent lands and are expected to add to production at Sousa early in Q3.
Operational Update: Other Operations
In addition to the ongoing programs at Sousa and Swan Hills, the company plans to drill a new well at Retlaw (oil & gas) with completion expected by the end of Q2 or early in Q3.
"With production significantly over 200 Boe/d and commodity prices at record levels, Drake is well positioned to move forward with its aggressive 2008 drilling program as well as to continue to pursue growth through acquisitions." said Drake president, Mr. Roger Penner.
Drake Pacific Enterprises Ltd. is active in oil and gas exploration and development throughout 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 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Neil Orr
Drake Pacific Enterprises Ltd.
V.P. Operations and Business Development
Email: norr@drakepacific.com
CONTACT INFORMATION Email Us http:// ### Disclaimer: If you have any questions regarding information in these press releases please contact the company listed in the press release. Please do not contact PressMethod. We will be unable to assist you with your inquiry. PressMethod disclaims any content contained in these release. |