| | THIS IS NOT A NEWS RELEASE - FOR THE INFORMATION OF SHAREHOLDERS ONLY
Derek Oil & Gas Corporation has experienced a strong and healthy start into 2006. On the LAK Ranch project, located in the prolific Powder River Basin in NE Wyoming just 5 miles from the Newcastle oil refinery, the Company has increased its focus on hydrocarbon potential from one known horizon to three potential horizons based on the 3D seismic interpretation. This means that there could in fact be more oil than originally anticipated. The Newcastle formation is still in the Continuous Steaming Program stage and continues to produce relatively small amounts of the high quality oil that exists in this horizon of the reservoir. The company is formulating a strategy for the exploration and development of the deeper horizons and Derek's focus with respect to the additional hydrocarbon potential is to ensure that the most effective plan is put in place.
2006 Financial Status: Derek has no long term debt, minimal liabilities and approximately $1.8 million dollars in the bank.
January Stock Talk:
Shares Issued & Outstanding: 39,526,628
Fully Diluted: 45,891,128
| TSX.V : DRK (CDN) |
 |
OTC BB : DRKOF (USD) |
| Monthly Volume: |
1,445,594 |
Monthly Volume: |
1,191,300 |
| Month High: |
$0.54 |
Month High: |
$0.47 |
| Month Low: |
$0.45 |
Month Low: |
$0.36 |
Focus in Progress:
- Continue to monitor the Continuous Steaming Program with JV partner
- Aim to improve the thermal response, project economics and production levels from the Newcastle formation
- Derek is in discussions with its JV partner to further explore & develop the hydrocarbon potential in the deeper horizons identified on the 3D seismic survey
Aquisition:
Derek has also been active in the acquisition of further prospective acreage at LAK Ranch. An additional 320 acres of federal and private lease land have been acquired contiguous with the northwest corner of the LAK Ranch Property. This acreage is combined with the existing LAK Ranch leases under the terms of the Joint Operating/Farm-In Agreement with Ivanhoe Energy, as it is within the Area of Mutual Influence ("AMI") as defined by the existing agreement.
2006 Operations:
Newcastle Formation:
- Supporting Ivanhoe Energy & their exceptional technical expertise with enhanced oil recovery methods
- Offering Ivanhoe potential strategies evaluated by Derek's consultants at Pacific Geotechnical and Derek's highly qualified and active board of directors
- Jointly monitoring the results from the Continuous Steaming Program
- Ensure that the highest possible price is being received for LAK Ranch oil production
Deep Horizons:
- Formulating a joint development plan to explore & develop the hydrocarbon potential in deeper horizons
Upcoming:
- Review the economic parameters of the project
- Determine the most cost effective plan to commercially produce the significant amounts of high quality oil that does exist in the LAK Ranch reservoir
- Determine an effective future drilling & development program
- A reserve report for Derek Oil & Gas will be completed by AJM Petroleum Consultants of Calgary Alberta following Derek's April 30th year end
Corporate Communications Focus:
- Management is focused on developing strong communications with its current & potential shareholders by effectively executing its corporate goals
- Investor Relations program with Stockgroup - ongoing
- Visit: http://www.stockhouse.ca/exec_casts/co_detail.asp?tickerSymbol=V.DRK&edition=Aug2004 to listen to a recently aired Executive Broadcast on Derek Oil & Gas Corporation
- Re-building the Derek website to ensure that the most up to date information is being presented in a professional and effective manner
- Derek will be participating in the Wall Street Analyst Forum in New York City on Tuesday February 28th, 2006 from 1:20 PM- 2:40 PM
- Derek's JV partner will be attending the same conference
- Investment Strategy Analyst, Dr. Michael Berry will continue his endeavors for further exposure for Derek in the US market
- Our flash presentation & streamlined corporate package or link is always available for mailing or emailing to current & future shareholders
- Please visit www.sedar.com to view all of Derek's publicly-filed documents
On behalf of the board of directors and management team at Derek Oil & Gas Corporation we would like to thank all of our current & future shareholders for their continued support & interest. We are very excited about the growth potential for Derek this year. Derek Oil & Gas Corporation is focused on supporting the Enhanced Oil Recovery Method on the Newcastle formation and developing and presenting development proposals to Ivanhoe using Derek's highly qualified technical consultants and diversely knowledgeable and active board of directors.
Please note that Ms. Erica Bearss, VP Corporate Communications at Derek's head office is available for any immediate follow up on the Company's progress or for complimentary corporate material.Barry C.J. Ehrl, President & C.E.O.
barry@derekoilandgas.com |
