Daybreak Oil and Gas, Inc. put on production the Gerald Grove H-9 and H-10 wells at the Twin Bottoms Field in Lawrence County, Kentucky, on June 30, 2014. The combined initial flow rate from both wells is approximately 630 barrels of oil and 150 Mcf of natural gas per day. Separately, the Gerald Grove H-9 well initial flow rate is approximately 340 barrels of oil and 75 Mcf per day of natural gas. The Gerald Grove H-10 well initial flow rate is approximately 290 barrels of oil per day and 75 Mcf per day of natural gas.

James F. Westmoreland, President and Chief Executive Officer, commented, "We are very pleased with the continued successful results that we are seeing in Kentucky, and look forward to advancing our business plan to generate a sustainable base of cash flow that will allow the Company to further expand its business in both California and Kentucky."

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