Daybreak Oil and Gas, Inc. reported the results of three wells drilled at its East Slopes Project in Kern County, California. All three wells were targeting the Vedder Sand formation.

The Bear #2 was drilled to a depth of approximately 2,500 feet. The well was completed and is currently producing at a rate of 50 barrels of oil per day. The company plans further development at the area, including a possible horizontal well.

The Sunday #4-H was a horizontal well and hit approximately 20 feet of net oil pay. The well is currently being completed.

The Black #1 was an exploratory well drilled to a depth of 2,300 feet. It hit 20 feet of net oil pay. The well is currently undergoing completion.

Daybreak Oil and Gas, Inc. is an exploration and production company with operations in California and Alabama. The company has a 25% working interest in 23,000 acres at the East Slopes Project in California and has been developing that area for several years.

Daybreak Oil and Gas, Inc. has a 12.5% working interest in the Gilbertown Field in Choctaw County, Alabama. Production from this area is approximately 85 barrels of oil per day.