FOR IMMEDIATE RELEASE
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 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:
Website: http://www.derekoilandgas.com
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
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 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.
Derek Announces Debt Settlement Agreements
The Haegelin Family LLC has agreed to settle a January 2008 promissory note debt in the principal amount of $254,854.10 by the issuance of 2,548,541 common shares ($0.10 per share).
Also, JackMasters Construction has agreed to release the Company from an ongoing contractual relationship whereby Derek was obligated for a further US$100,000 in exchange for 75,000 common shares of the Company.
Derek Oil & Gas Corporation is a Canadian based, publicly traded oil exploration and production company that utilizes enhanced oil recovery 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 is trading in Canada on the TSX Venture Exchange
with the symbol DRK.
ON BEHALF OF THE BOARD
'Signed"
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
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
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 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.
Derek Secures Interim Funding
The Company also reported, subject to regulatory approval, the granting, pursuant to its existing stock option plan, of 2,225,000 incentive stock options exercisable at $0.10 per share for a term of five years.
Derek would also like to clarify the terms of the royalty extension announced on March 4, 2009. The bonus payment due under the extension agreement until production reaches 600 barrels a day is limited to the royalty (3.3%) times the number of barrels produced per month times the price realized for oil sales in excess of a $70.00 floor price. For example, should production in June be 500 barrels and the realized price for oil for the month was $100.00 the bonus would be 500 times $30.00 ($100.00 realized price less $70.00 floor) times 0.033 (the royalty) or $495.00. Derek would receive a royalty of 500 times $70.00 (the floor) times 0.033 (the royalty) or $1,155.00. When the realized price for oil is less than the $70.00 floor, as is currently the case, no bonus payment is payable.
Derek Oil & Gas Corporation is a Canadian based, publicly traded oil exploration and production company that utilizes enhanced oil recovery 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 is trading in Canada on the TSX Venture Exchange with the symbol DRK.
ON BEHALF OF THE BOARD
'Signed"
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:
Website: http://www.derekoilandgas.com
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
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 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.
Derek Negotiates Royalty Agreement Extension
The extension agreement eliminates a prior commitment to produce an average of six hundred barrels a day for a continuous period of six months by March 2009 and extends the royalty period to November 9, 2019 for consideration of $US25, 000 cash and the issuance of 700,000 shares to the original royalty holders.
In addition to the cash payments and share issuance above the Company also agreed to pay effective May 1, 2009, a bonus payment for each month that cumulative production from the property is less than 600 barrels of oil per day. The bonus payment is calculated as the total realized oil price from the sale of oil for the month less $70 times the number of barrels of oil produced and sold.
Derek Oil & Gas Corporation is a Canadian based, publicly traded oil exploration, development and production company that utilizes enhanced oil recovery 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 is trading in Canada on the TSX Venture Exchange with the symbol DRK
ON BEHALF OF THE BOARD
"Signed"
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
Derek Arranges Convertible Loan for up to US$1,000,000
The proceeds are to be committed for the development of the Company's oil project, the LAK Ranch, in Wyoming where, with the recently acquired generators and artificial lift equipment the Company will be able to increase steam capacity and productivity..
Derek Oil & Gas Corporation is a Canadian based, publicly traded oil exploration, development and production company that utilizes enhanced oil recovery 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 is trading in Canada on the TSX Venture Exchange with the symbol DRK
ON BEHALF OF THE BOARD
"Signed"
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