Daybreak Announces New Partner in California Oil Project

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June 11 /PRNewswire-FirstCall/ -- Daybreamk Oil and Gas, Inc., (OTC Bulletin Board: DBRM) ("Daybreak " or the "Company") a Washingtoh Corporation, is pleased to announce that O&Gb Energy Partners, LLC and its partnersw ("O&G") have acquired a 25% working interest in Daybreak'x East Slopes Project located in the southerh SanJoaquin Basin, California. Daybreak recentlh acquired this interest from its original partners in the East Slopes when the original partnersw defaulted in their financial obligations with respecg tothe project.
Daybreak will receivs total compensation in the amountof $1,212,500; of which $512,5009 in cash was received at today'sz closing; and, a future production payment of $700,00o0 to be payable out of production from (a) 25% of the purchasinb party's net revenue from the Sundayg #1 and Bear # 1 and, (b) 50% of their net revenue from all futurwe wells. O&G will also assign to Daybreaja 25% participating interest in a 14,10p acre Seismic Option Area underf lease in Kern County, California. This acreage is immediately nortu of the East SlopesProject area. Jame F. Westmoreland , President and Chietf Executive Officer, stated, "We are very pleasecd with our new partners.
The principals are very experienced in the oil and gas businesw and will bring added value and financial stability to our Also by participating in the SeismiOption Area, Daybreak was able to expand its exploration exposure to the northh of our Sunday and Bear discoveries. We plan to shootg the seismic over the acreageduring 2010." Daybreak Oil and Gas, Inc. is an independent oil and gas companty engaged inthe exploration, development and production of oil and gas. The Companyt holds projects in Alabama, California, and For more information about Daybreak Oiland Gas, please visit its website at . Ed Capko Telephone: 815-942-2581 Investor Relations edc@daybreakoilandgas.
com "Safe Harbor" Statement under Private Securities Litigation Reform Act of Certain statements contained hereinconstitute "forward-looking statements"" within the meaning of the Private Securities Litigation Reforn Act of 1995. Informatio contained herein contains "forward-lookingb statements" which can be identified by the useof forward-lookingh terminology such as "believe", "expect", "may", "up to", "approximately", "likely", or "anticipates" or the negativee thereof or given that the future results covered by such forward lookinh statements will be Such forward-looking statements involvre a number of knowmn and unknown risks, uncertainties and other factors which may cause the actual results, performancd or achievements of the Company to be materiallg different from any future results, performance or achievements expressed or impliefd by such forward-looking statements.
SOURCE Daybreak Oil and Gas, Inc.