CARSON CITY, Nev.--(BUSINESS WIRE)--Drake Gold Resources Inc. (OTC:DKGR), a natural resources company with a focus in oil and gas, announces today that its operator, Chris Repasky, has completed the installation of motors on select wells for pump evaluation. In initial tests it has been confirmed that oil is indeed present toward regular production flow and eventual revenues to the company.
As mentioned, Drake Gold Resources is entitled to a 50% working interest that will be reinvested into the development of the lease until a nominal benchmark is reached by the former lease owner, at which point the Company will be entitled to 100% working interest subject to a three year overriding interest payable to the former lease owner.
The next step moving forward is to connect the oil lines to begin pumping on the initial set of wells, and then the same process will be repeated for additional wells in the lease.
“It is always a pleasure speaking with Chris,” states DKGR CEO, Peter Matousek. The more updates I get from Chris, the more excited I become about the lease's potential. It has been an honor to be a part of a process, where the main near-term objective is to start generating revenues (on the existing lease) that will allow us to replicate this business model on other lease opportunities. Whether explored on our own, or a joint venture partnership, I believe that taking one step at at time, or as some like to say "organic growth," will bring revenue streams to the company.
The company is pleased with the opportunities for DKGR moving forward in line with recent reports from the U.S. Energy Information Administration (EIA) Independent Studies and Analysis dept. which states, “EIA expects U.S. total crude oil production to average 6.3 million barrels per day (bbl/d) in 2012, an increase of 0.7 million bbl/d from last year. Projected U.S. domestic crude oil production increases to 6.8 million bbl/d in 2013, the highest level of production since 1993.” Source: http://www.eia.gov/forecasts/steo/
More announcements from the company to follow as the endeavor continues to progress. Shareholders will be able to view pictures of pumps and wells taken by Repasky and his team later today on the company’s website, www.drakegold.com.
Safe Harbor Statement: The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.