MIDLAND, Texas, July 30, 2010 (GLOBE NEWSWIRE) -- Doral Energy Corp. (OTCBB:DRLY) ("Doral" or "the Company") announced today that its independent reserve engineering firm, Joe C. Neal and Associates of Midland, Texas, is nearing completion on a complete review of oil reserves of the Company's recently acquired assets in Chaves County, New Mexico. The reserve report is expected to be completed within the next two weeks. The report is necessary in order to put together a complete development plan for the field including an infill drilling program. Additional information from the report will be used to evaluate PDNP (Proved developed non-producing) reserves that are easily converted to PDP (Proved developed producing) through low cost workovers.
While awaiting the completion of the report, the Company is exploring several options for financing this development and additional property acquisitions that are currently targeted by management. These options include traditional bank financing, bringing in an industry partner or creating a joint venture with a financial partner.
Management Comments
E. Will Gray II, President and CEO of Doral Energy, said, "Although we have not put out much news since the sale of the Hansen assets, we have been very busy examining potential acquisitions as well as considering all possible financing options for making those acquisitions and initiating a complete development program. The first step is to have a complete reserve report which allows us to move forward on all other fronts."
About Doral Energy Corp.
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. Shareholders and investors are encouraged to visit Doral Energy's website at www.DoralEnergy.com for more information.
Forward Looking Statements
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. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. In particular, there is no assurance that Doral will be able to re-finance its current credit facility or acquire any future properties.
Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom the Company has contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. In addition, the Company has not yet entered into binding agreements with Alamo Resources LLC or Macquarie Bank Limited and there are no assurances that the Company will do so. Additional information on risks for the Company can be found in the Company's filings with the U.S. Securities and Exchange Commission.