| ||Tue Oct 25, 2011|
Oil Production up Significantly at the Derek Oil and Gas Lak Ranch Project, Wyoming
| ||Vancouver BC, October 25, 2011 - Derek Oil and Gas Corporation (TSX-V: DRK, OTCBB DRKOK, "Derek") is pleased to provide an update on the activities at its LAK Ranch oil project in Wyoming.|
There are currently 12 operating oil wells in the pilot area. Recent oil production levels are up substantially; Derek shipped more oil in the first four months of 2011 than in all of 2010, thus enhancing Derek's revenue stream and proving the viability of the technology and methodology being employed for oil extraction.
A 50 million BTU generator, one of two on site, is providing sufficient steam to expand the reservoir area beyond the limits of the currently installed wells, implying that further wells could be initiated at nominal cost. Winterizing of all facilities is nearing completion, well ahead of winter conditions.
Derek CEO Barry Ehrl said "I couldn't be more pleased with the level of effort and expertise displayed by our team in the field. They've done an excellent job of bringing us closer to our goal of self-sufficiency through revenue growth. We're currently offering a small financing to enhance infrastructure and bring several new wells on line. With those goals achieved, based on current oil prices Derek will be able to expand the LAK Ranch field without the need for further equity dilution. This change of focus will enable Derek to achieve its goal of becoming a mid-sized oil producer by growth from within."
Derek Oil and Gas Corporation is a Canadian-based publicly traded oil development and production company utilizing enhanced oil recovery techniques to establish and increase oil production. Derek's current focus is the LAK Ranch property located in Wyoming's prolific Powder River Basin.
On Behalf of the Board of Directors,
President, CEO and Director
Telephone: 1-888-765-0066 or 604-331-1757
This news release may contain 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 forward-looking 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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