Derek Oil & Gas Corporation is an oil exploration, development and production company that utilizes enhanced oil recovery ("EOR") techniques to develop new production from reservoirs containing significant quantities of oil. Derek's current focus is on the further development and increasing production from their prime property located in NE Wyoming's Powder River Basin.
Corporate Focus: Invest in North American Energy.
Corporate Mission: Derek Oil & Gas Corporation (Derek) has a corporate mission to become a mid-tier energy producer within the next three years. This mission is to be accomplished through exploration, development and production from oil and gas assets in North America.
Derek Oil & Gas Corporation is publicly traded in Canada on the TSX Venture exchange under the symbol DRK.
LAK RANCH OIL PROPERTY
Derek Oil & Gas Corporation's 8000 acre LAK Ranch property is located on the eastern margin of the Powder River Basin, approximately 8 kilometers (5 miles) southeast of Newcastle, northeastern Wyoming.
The LAK crude oil being produced is viscous and on the high end of "heavy oil" (API approx. 20). The oil has negligible paraffin, low sulphur content and requires an enhanced oil recovery method ("EOR") to extract.
The quantity of "oil in place" at LAK Ranch has been calculated by several operators and consultants and in all cases the quantity is significant.
Several unsuccessful attempts were made by previous operators to produce oil from LAK. Derek produced about 5000 barrels from a limited horizontal well program in Apr/01 to Jan/02.
The LAK Property re-commenced operations in Jan/04 using a limited vertical injector/horizontal producer pilot program that employed cyclic and continuous steaming. The process produced over 20,000 barrels of oil from Jun/04 to Nov/06. This pilot program is still in operation.
All of the LAK production to-date has been from the Newcastle Sandstone.
A 4.4 square mile high resolution 3D seismic survey has been carried out over the north portion of the LAK Ranch Property. This survey has been instrumental in defining the extent of the Newcastle Sandstone and also delineating potential prospects in the deeper Fall River and Minnelusa Sandstones. No wells have yet been drilled into prospects contained in these deeper stratigraphic units.
Due to the viscosity of the high quality oil being produced from the Newcastle Formation of the reservoir, Derek requires the use of an enhanced oil recovery ("EOR") technology to extract. The oil being produced is low in sulphur content, has negligible paraffin and sells for West Texas Intermediate ("WTI") less US$14.25 per barrel.
Blue Sky Potential:
A high definition 3D seismic survey was completed on 4.5 square miles of the property. The seismic identified multiple formations with hydrocarbon potential. Current operations have focused on the Newcastle Formation lower alluvial section only and these recent interpretations have provided Derek with increased potential. Please note that an EOR may or may not be required on the deeper formations identified with hydrocarbon potential.
Derek is operator of an 8000 acre property located in NE Wyoming just five miles or 15 minutes from the Newcastle refinery. Derek has a 95% working interest and is in partnership with SEC Oil & Gas who has a 5% working interest. Derek also has a 4.4% Royalty on all oil production to basement within the property. To date, approximately 10 million US dollars has been spent on a first-class Bateman Engineered above ground facility that is now in pilot phase operation and production. In 2006 the LAK Ranch property demonstrated the highest levels of production on the property's history (when conventional means were applied). These observations conclude that the EOR being utilized is proving to be a solid base for a highly successful oil project. Derek management and its board of directors believe that they possess the expertise and resources to drive this project forward. The Derek team is confident that they have acquired the necessary ingredients to develop and implement the most cost effective EOR to maximize production from the LAK Ranch.
OTC Market Tier Pink Sheets Current
Primary SIC — Industry Classification 1381 - Drilling oil and gas wells
State Of Incorporation BC
Jurisdiction Of Incorporation Canada
Company Officers Alan H. Stevens, Dir.
John Lush, Dir.
Patrick Boswell, Dir.
Barry C.J. Ehrl, President, CEO
Edward Byrd, CFO
Number of Employees 3 as of Apr 30, 2005
SEC Reporting Status De-Registered as of Aug 24, 2006
Fiscal Year End 4/30
Non-U.S. Exchange Listing (DRK) TSX Venture Exchange
Estimated Market Cap $1,622,034 as of Nov 4, 2008
Outstanding Shares 35,261,616 as of Apr 30, 2005
Current Capital Change shs decreased by 1 for 3 split
Pay Date: Mar 19, 2003
- Formerly=Derek Resources Corporation until 3-03
Transfer Agent Computershare Trust Company of Canada Inc.
510 Burrard St.
Vancouver, BC V6C 3B9