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| | Wed Nov 5, 2008
Derek Reports Progress on Moving New Generators to Site; 1st Quarter Operating Results
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| | Derek Oil & Gas Corporation is very pleased to provide an update on progress with respect to the use of two 50 MM Btu/hr generators and ancillary equipment at our LAK Ranch oil project in Wyoming. Management is pleased to report that both generators have been disassembled and moved to the LAK Ranch site. The generators have been placed on a permanent pad and all materials to house the two generators have been delivered. Management expects to refurbish, reassemble, install the generators in a building and have at least one generator on-line by January 2009.
These generators will give the Company's current steam generating capacity a six-fold increase. Mr. Robert Hurkmans, the Company's Chief Operating Officer and steam recovery expert, has previously identified the lack of steam capacity as the main factor for the lack of production response from the Company's pilot wells drilled in 2007.
Mr. Hurkmans goes on to say "We expect to increase production from our 2007 pilot within six months of commencement of steaming from 10 barrels of oil per day cold production to 50 barrels per day after the steam generator project completion followed by steam soaking nine producers and implementing our three updip steam drive injector configuration. The production rate will continue to increase to 150 barrels per day in about a year from gravity drainage effects."
The Company's current 25 MM Btu/hr generator, which is over 40 years old, will be made portable and utilized for steam soaking wells beyond our pilot and currently designated steam drive/soak project area.
Derek Oil & Gas Corporation is a Canadian based, publicly traded oil exploration, development and production company that utilizes enhanced oil recovery (EOR) techniques to develop new production from reservoirs in North America. Derek's current focus is on the further development and increasing production from their prime property located in NE Wyoming's prolific Powder River Basin.
Derek Oil & Gas Corporation also reported that sales volumes in the period May 1 through July 31, 2008 were 25 BOE/day, a substantial increase over the 8 BOE/day for the first quarter of 2007. Production increased as a result of steaming the 1-P well and some recovery from the 12 well program area. There was no production from the 12 well program area in the first quarter last year, as the wells were not completed until after July 31. The net sales price also increased to $112.79/barrel from $58.00/barrel in the prior year.
Derek Oil & Gas Corporation is trading in Canada on the TSX Venture Exchange with the symbol DRK
ON BEHALF OF THE BOARD
Mr. Barry C.J. Ehrl, President and C.E.O.
For further information please contact Derek's Corporate Communications
Department at:
Telephone: 1-888-756-0066 or (604)-331-1757
Corporate E-Mail: info@derekoilandgas.com
Website: http://www.derekoilandgas.com
The TSX Venture Exchange has neither approved nor disapproved the information contained herein. This document includes forward- looking statements. Forward-looking statements include, but are not limited to, the continued advancement of Derek Oil & Gas Corporation's LAK Ranch project. When used in this document, the words "potential", "plan", "could", "estimate", "expect", "intend", "may", "should", and similar expressions are intended to be among the statements that identify forward-looking statements. Although Derek believes that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forwardlooking statements include the potential that Derek's LAK Ranch project will experience technological and mechanical problems, geological conditions in the reservoir may not result in commercial levels of oil and gas production, and other risks. |
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