MIDLAND, Texas, July 1, 2010 (GLOBE NEWSWIRE) -- Doral Energy Corp. (OTCBB:DRLY) ("Doral" or "the Company") announced today that it has closed on 6,800 acres of operated producing oil and gas assets within Southeastern New Mexico for a total purchase price of $1,700,000. The acquisition consists of 15 leases currently producing approximately 54 BOPD (8/8ths) with Working Interests ranging from 37.9%-100% with associated Net Revenues ranging from 32.3%-87.5%. Current production is from the Permian Age, San Andres Formation, which produces at a depth of approximately 4,100 feet. This acreage sits adjacent to other San Andres production and offers Doral the ability to explore the possibility of both down-spacing, to exploit undrained acreage, as well as to stimulate current producers in order to potentially increase production.
Management Comments
E. Will Gray II, Chairman & CEO of Doral, states, "Management is pleased to close on this acquisition as it provides immediate shareholder value after the recent divestiture of certain Permian oil and gas assets. Mr. Gray continues, "This acquisition further outlines our exploitation model of applying current technology and suitable capital towards maximizing legacy assets."
About Doral Energy Corporation
Doral Energy Corp. (OTCBB:DRLY) is an oil and gas exploitation and production company headquartered in Midland, Texas. Doral Energy Corp.'s strategy is to grow a portfolio of under-developed production and exploitation assets with the potential for generating near-term increases in existing production through operational improvements, and longer-term development of proved undeveloped reserves by infill drilling. Doral focuses on identifying acquisitions that generate immediate cash flow from production, but which also have strong proved developed non-producing and proved undeveloped reserves that can be tapped for significant growth. The prolific Permian Basin of Texas and New Mexico is the geographic region of focus for the Company's future acquisition activity.
Forward Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, this news release contains forward-looking statements that are not historical facts and are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. In particular, there is no assurance that Doral will be able to further increase shareholder value or increase market capitalization due to either unforeseen markets conditions or the possibility of dilution in order to execute upon the Company's business model. Additional information on risks for the Company can be found in the Company's filings with the U.S. Securities and Exchange Commission.