DPE Drake Energy Ltd.

Drake Pacific Enterprises Ltd. (TSX VENTURE:DPE) 

Management and Director Update

Drake Pacific Enterprises Ltd (DPE) announces that Mr. Roger Penner has resigned
as President, CEO and director. Mr. Penner will continue on with DPE as a
consulting geologist. The Board of Directors thanks Mr. Penner for his more than
nine years of contribution to DPE and looks forward to the continued
relationship.


Mr. Neil Orr has been appointed President and CEO of Drake. Mr. Orr was a
vice-president and director with the company for the past two years and has over
twenty years of managerial and executive experience.


Bank Credit Facility Renewed

DPE has successfully negotiated a renewal of its credit facility at $3.8
Million. Increased reserves, production and cost controls over the last six
months have allowed DPE to maintain this level of credit despite dramatic
decreases in energy prices.


Acquisition

DPE has completed the acquisition of additional working interest in Sousa, Swan
hills, Forestburg, and Retlaw from a private oil and gas company (PrivateCo) for
the consideration of approximately $537,000 in the form of $250,000 cash and
$287,000 release of receivables. The transaction was completed in late June and
is effective April 1, 2009. This acquisition will add approximately 31 barrels
of oil equivalent per day (boed) (12% oil).


The current acquisition has an effective price of $17,300 per boed. The reserve
value for the working interest before tax proved and probable reserves (NPV 10%)
is approximately $1,130,000 based on the evaluation at March, 2009 by Sproule
and Associates.


Operations

As a result of the current natural gas prices, approximately 80 boed have been
temporarily shut in to conserve reserves and control costs. With the completion
of the recent acquisition and including the effect of the recent shut ins, DPE
has current production of approximately 220 Boed with some additional production
expected from the new 11-12 well when it ramps up to full production in July.
Continued focus on cost controls, undervalued acquisitions, and a number of
exploitation projects are planned for the summer.


Summer/Winter Program

With recent working interest and land acquisitions, the company has identified
three oil exploitation opportunities, two in our core area of Sousa and one in
one of our southern areas. Given current oil prices, these drilling and
recompletion targets will be given key priority in our upcoming program.


"Controlling costs and improving production is critical to managing the company
during these challenging times. We believe pursuing these new oil opportunities
will be the key to dramatic growth in the coming months." said Drake president,
Mr. Neil Orr.


Drake Pacific Enterprises Ltd. is active in oil and gas exploration and
development in Alberta and Saskatchewan. 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
Von Okt 2024 bis Nov 2024

Drake Energy Ltd. (TSXV:DPE)
Historical Stock Chart
Von Nov 2023 bis Nov 2024