VANCOUVER, British Columbia, Aug. 14, 2001 (PRIMEZONE) -- Derek Resources Corporation (CDNX:DRS) (OTCBB:DRKRF) reports that important, positive changes in the company's financial outlook have occurred.
The company has been notified that all proceeds from the sale of LAK Ranch crude oil will be immediately released. The release was the result of ongoing discussions between the company and its crude oil buyer, during which it was agreed that the company will indemnify the buyer from possible claims that Asdar Group, Inc. may launch against them, despite the fact that Asdar has no right or title to the proceeds. The release of past and future proceeds is paramount to the company's ability to carry on long-term operation of the LAK Ranch SAGD Oil Project. As a result of this news the company has begun preparations to re-commence steaming operations. Water disposal preparations and permits are in place, all technical adjustments are complete and the plant is ready to go. The company is making final arrangements and expects to announce a commencement date within the next two weeks.
Prior to the release of its crude oil proceeds the company was preparing a plan of action designed to protect the company's assets during a prolonged shutdown. Due to these recent developments, the company now plans to operate the LAK Ranch SAGD Oil Project in perpetuity and achieve positive cash flow by years' end.
The company is also vigorously preparing for the next round of legal action with Asdar, which is scheduled to occur on October 31, 2001. On that date the courts are scheduled to hear the company's motion requesting a partial summary judgement on the key point of Asdar's civil lawsuit: "has the company vested its interests in the LAK Ranch lands"?
Asdar is currently claiming that the company has not vested on the grounds that the company has overspent or misspent on the project. Asdar's lawsuit is without merit and the company looks forward to a ruling of the court regarding this matter.
DEREK RESOURCES CORPORATION (signed) "Barry Ehrl" "Frank Hallam" Barry C.J. Ehrl, Director Frank Hallam, Director
For further information please contact John Foulkes at Investor Relations: 1-888-756-0066 or (604) 331-1757; www.derekresources.com; Corporate e-mail: info@derekresources.com; Investor Relations e-mail: invest@derekresources.com.
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein.