DPE Drake Energy Ltd.

Drake Energy Ltd. (TSX VENTURE:DPE) ("Drake" or the "Company") announces the
filing of its 2009 audited financial statements and management discussion and
analysis. Access to Drake's 2009 year end results may be obtained at
www.sedar.com or www.drake-energy.com.


Average production increased from 2008 to 2009 and subsequently is estimated to
increase again in Q1 of 2010.




----------------------------------------------------------------------------
Production                    Mcf/d                Bbld         Total Boe/d 
----------------------------------------------------------------------------
2008 Yr Avg.                    662                  50                 160 
2009 Yr Avg.                    884                  31                 178 
2010 Q1 Avg. estimate           800                  70                 203 



Production in Q1 2010 briefly reached a peak of 300 Boed due to the initial high
rates from the 01-24 Sousa oil well and other optimization efforts at various
other locations. Declines at a number of wells and temporary shut-ins have
reduced production levels subsequently.


Summary and results for 2009

In the first half of 2009, the Company focused on reducing its operating costs
which were high. Accretive acquisitions of partners' interests were made,
profitable dispositions were made and still, cash flows were negative even
though production levels were at record highs. As the year progressed, these
costs were reduced significantly; in some properties as much as 30% or more.


The price of natural gas continued to slide and the Company shut in some gas
properties to preserve reserves. Also, during Q3 gas production was hampered by
a 3rd party pipeline failure, with certain production shut in or restrained for
many months. In addition a major joint venture partner went bankrupt leaving
Drake with a large uncollectible receivable and therefore increased debt.


As this was unfolding Drake made a key move into pursuing its considerable
in-house oil prospects. A modest equity financing was done in the early fall and
capital projects began in earnest in December to bring on more production, with
the primary focus on oil.


The 01-24 oil well at Sousa was a critical success, adding significant revenue
and proving up Drake's core area oil prospects. It came on strongly in February
2010 at over 120 barrels per day. It averaged 70 barrels per day in the first
month and has since stabilized at about 50 to 60 barrels per day. This
contribution to cash flow is significant and adds a great deal of value to a
company of Drake's size. However, a number of the smaller projects were marginal
or uneconomic.


Forward into 2010

Drake entered 2010 with higher levels of production than previous years and with
a stronger oil weighting. It has multiple years of oil and gas prospects lined
up and has strengthened its core area of Sousa with infrastructure and more oil
production. The Company has also taken aggressive measures to reduce both
operational and general and administrative expenses.


Drake's financial condition, however, is such that it does not have the capital
to pursue its in-house opportunities, and the working capital deficiency is now
sufficiently large that the Company has curtailed all capital and non-essential
expenditures and is negotiating longer term repayment schedules with the larger
creditors.


With positive cash-flow, steady production and reduced expenses the Company can
move forward and progressively improve its balance sheet. As has been previously
press released, Drake's Board of Directors has decided to seek strategic
alternatives to maximize shareholder value.


Change in Management

Greg Hodgson has resigned as V.P. Engineering but will continue with the Company
on a part-time consulting basis. The Board would like to thank Mr Hodgson for
his efforts over the last year.


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

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