New Release=======================================================================
Re: News Release - Wednesday, February 23, 2011
Lak Ranch Operational Update
=======================================================================
The Company is pleased to report that it was able to complete three
shipments of oil this month due to the increased steaming allowed by
the refitted generator.
Currently the generator is being run at a rate of 2,240 barrels of
steam per day. This is almost a three-fold increase over the old 25 MM
BTU generator that had a maximum capacity of 800 barrels of steam per
day. This enables the Company, for the first time, to adequately steam
the existing vertical wells to produce from the reservoir. The Company
anticipates increased production responses from the vertical wells as
steaming continues.
Mr. Robert Hurkmans, the Company's COO and steam recovery expert, had
previously identified the lack of steam capacity as the main factor for
the lack of production response.
Mr. Hurkmans plans to steam into the reservoir until an ideal reservoir
pressure and temperature are achieved, and then start pumping the
Company's one horizontal and 8 vertical wells. Management currently
estimates this production to start in late spring 2011.
Mr. Hurkmans has over 37 years' experience in the oil industry and
specializes in improving the economics of tertiary recovery projects
(with an emphasis on steam flood technology) such as Derek's LAK Ranch
project. In past projects for major oil companies such as Occidental,
Arco and Shell, Mr. Hurkmans has reduced drilling costs and overall
operating costs by up to 30%. He has won the ARCO Award for his work
at Midway Sunset, the Shell Oil Company Award for his work at
Kernridge/McKittrick and was a finalist for the Occidental Engineering
Excellence Award in both 2001 and 2003 for his work at Elk Hills.
Derek Oil & Gas Corporation is a Canadian based, publicly traded oil
exploration 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: info@derekoilandgas.com
Website: https://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.