THIS IS NOT A NEWS RELEASE - FOR THE INFORMATION OF SHAREHOLDERS ONLY
Derek Oil & Gas Corporation is pleased to report that significant progress was made in the month of August, 2005. As projected in last month's President's Report, Derek and their JV partners managed to locate a drilling rig at a time when rig availability was scarce, commence the drilling of the three vertical injector wells at the LAK Ranch and welcome a new member to the Derek Board of Directors.
OPERATIONS PROGRESS:
Complete:
1 Million USD 3-D seismic survey shallow interpretation
Third steam cycle successfully completed
Successful meeting with JV partner to discuss Pacific Geotechnical Associates, Inc. "PGA" development plan
Determined next phase commitment to the project
Selected and agreed upon three upcoming vertical injector well locations
Clearance from surface owner
Applications to drill steam injection wells submitted to WOGC
Located drilling rig
Scheduled drill date
Commenced drilling of three vertical injector wells
Welcomed Mr. George Eynon, B.Sc., M.Sc., to the Derek Board of Directors
Current:
3D seismic data continues to be interpreted, assisting with further development of the project
Complete drilling of three vertical injector wells
Install steam injection lines
Continuous steam injection into new injection wells
Production from horizontal well
Derek's Annual General Meeting (AGM) is set for September 23, 2005
August Stock Talk:
Shares Issued & Outstanding: 35,261,628
TSX.V : DRK (CDN)
OTC BB : DRKOF (USD)
Monthly Volume:
1,975,300
Monthly Volume:
1,162,467
Month High:
$0.56
Month High:
$0.49
Month Low:
$0.365
Month Low:
$0.29
DEREK'S MANAGEMENT FOCUS-2005:
To increase shareholder value by:
Supporting its project partner and their exceptional technical expertise with enhanced oil recovery methods
Facilitating the interpretation of the historical data and acquired 3-D seismic reservoir data for the development of an effective drilling program and comprehensive reservoir simulation model
Working with its project partner to determine the most cost effective plan to produce significant amounts of the high quality oil that is currently in-situ in the LAK reservoir
Working with its project partner to ensure that the highest possible price is received for LAK crude oil production
Acquisition of land for exploration and development is ongoing
CORPORATE COMMUNICATIONS:
Derek management is focused on developing strong communications with its current and potential shareholders while effectively executing their short and long term targets
Investment Strategy Analyst, Dr. Michael Berry continues to make mention of Derek's investment opportunities in his daily morning notes
Our investor relations team has mailed a letter to existing and potential shareholders requesting their preferred method of communication. If you have not received this letter please call us at 1-888-756-0066 or email erica@derekoilandgas.com to ensure your contact information is up to date and accurate
An newly-updated flash presentation & streamlined corporate package will soon be available for mailing to current & future shareholders; Feel free to contact Ms. Erica Bearss, VP Corporate Communications at the Derek office for any immediate follow up on Derek Oil & Gas Corporation's forward momentum or for a complimentary corporate package
The Washington DC Money Show was a huge success due to the attendance of high quality investors, the timing with respect to the progress on the LAK Ranch property and at post conference we observed a positive trend for Derek in the market
In closing, if you recall in July 2005 the company was focused primarily on facilitating the necessary steps and required preparatory work towards drilling the three upcoming vertical injector wells. Well, we are very pleased to see our hard work, patience and determination is paying off and looking forward to commencing the continuous steaming stage of the project at the LAK Ranch with the expectation of increasing the levels of oil production during this highly profitable time in the oil & gas sector.
On behalf of the management team at Derek Oil & Gas Corporation we would like to thank all of our current and future shareholders for their continued support and interest in Derek Oil & Gas Corporation. We assure you that Derek management is determined and focused on significantly increasing levels of production by the end of this year.
