Daybreak Oil and Gas, Inc. provides the drilling results of the seventh well in the current drilling program at the East Slopes Project in Kern County, California. The Ball #2-11 well was drilled to 2,505 feet and encountered approximately 20 feet of oil pay in the Vedder Sand. The Company owns a 37.5% working interest in the Ball #2-11 well. After production casing is set, the drilling rig will move to drill the Bear #7 well, which is the final well in the Company's current eight well drilling program.

James F. Westmoreland, President and Chief Executive Officer, commented, "This well has helped to define the size of the Ball reservoir; and, with its success will add additional proved reserves, as well as the potential for seven to eight more drilling locations here. All of the East Slopes area development wells in this drilling campaign have been successful and encountered pay intervals and production rates which meet or exceed the pre-drill estimates. Final production rates for each well will be reported following completion of the testing programs."

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