Daybreak Announces Successful Oil Well - Kicks Off Six Well Drilling Program to Develop California Oil Project

SPOKANE, Wash., May 7, 2013 /PRNewswire/ -- Daybreak Oil and Gas, Inc. (OTCBB: DBRM) ("Daybreak" or the "Company"), a Washington corporation, is pleased to announce the results of the first well in the initiation of a six well drilling program at the East Slopes Project in Kern County, California.  The Bear #5 Well was drilled to 2,300 feet and encountered approximately 30 feet of oil pay in the Vedder Sand.  The Well is currently being completed and will be put on production within a week.  Production results will be announced following production testing.  The Bear #5 Well will be produced into the Company's Sunday Central Processing Facility nearby.  The drilling rig has been moved to drill the Bear #6 Well, which was spud on May 6, 2013.  The Bear #6 Well is the second well in the six well drilling program currently underway.  The Company owns a 37.5% working interest in the Bear wells.  The Company has contracted for a larger rig to drill its Chimney exploratory well and two of the development wells in the program.  This rig is expected to be available during the latter part of May, 2013.

James. F. Westmoreland, President and Chief Executive Officer, commented "In preparation of our drilling program, we laid flow lines and provided electrical hook ups to all our development well locations.  This will allow us to put our wells on production quickly as we get them completed; no other work will be needed.  We should see immediate results in terms of production, including faster cash flow as a result of our pre–planning."

Daybreak Oil and Gas, Inc. is an independent oil and gas company engaged in the exploration, development and production of oil and gas in California.  The Company is headquartered in Spokane, Washington with an operations office in Friendswood, Texas.  Daybreak owns a 3-D seismic survey that encompasses over 20,000 acres over 32 square miles with approximately 13,000 acres under lease in the San Joaquin Valley of California.

For more information about Daybreak Oil and Gas, Inc., please visit the Company's website at www.daybreakoilandgas.com.

Contact:
Ed Capko Telephone: 815-942-2581
Investor Relations Email: [email protected] 

Certain statements contained in this press release constitute "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "should," "up to," approximately," "likely," or "anticipates" or the negative thereof. These forward-looking statements are based on our current expectations, assumptions, estimates and projections for the future of our business and our industry and are not statements of historical fact. Such forward-looking statements include, but are not limited to, statements about our expectations regarding our financing, our future operating results, our future capital expenditures, our expansion and growth of operations and our future investments in and acquisitions of oil and natural gas properties. We have based these forward-looking statements on assumptions and analyses made in light of our experience and our perception of historical trends, current conditions, and expected future developments. However, you should be aware that these forward-looking statements are only our predictions and we cannot guarantee any such outcomes. Future events and actual results may differ materially from the results set forth in or implied in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: general economic and business conditions; exposure to market risks in our financial instruments; fluctuations in worldwide prices and demand for oil and natural gas; fluctuations in the levels of our oil and natural gas exploration and development activities; our ability to find, acquire and develop oil and gas properties, including the ability to develop the East Slopes Project prospects; risks associated with oil and natural gas exploration and development activities; competition for raw materials and customers in the oil and natural gas industry; technological changes and developments in the oil and natural gas industry; legislative and regulatory uncertainties, including proposed changes to federal tax law and climate change legislation, and potential environmental liabilities; our ability to continue as a going concern; and our ability to secure additional capital to fund operations. Additional factors that may affect future results are contained in our filings with the Securities and Exchange Commission ("SEC") and are available at the SEC's web site http://www.sec.gov. Daybreak Oil and Gas, Inc. disclaims any obligation to update and revise statements contained in this press release based on new information or otherwise.

SOURCE Daybreak Oil and Gas, Inc.