Daybreak Oil and Gas Inc (DBRM)

[TechnicalAnalyst1984]

INSIDER FINANCIAL ON DBRM:

https://insiderfinancial.com/4-otc-stock-bets-that-will-boost-your-portfolio-ccaj-dbrm-intk-sbes/182833/

All in all, this is a bargain price for an OTC stock that can end up with a valuation of over $200 million – at least that’s what Reabold’s assets might be valued at.


DBRM is an independent crude oil and natural gas company engaged in the exploration, development, and production of onshore crude oil and natural gas in the US. It is developing its shallow crude oil reserves, where it owns a 3-D seismic survey that encompasses 20,000 acres over 32 square miles with approximately 3,500 acres under lease in Kern County in the San Joaquin Valley of California. The company owns a 70% working interest in 1,400 acres in the Michigan Basin where it has two shallow crude oil prospects.

In October, DBRM agreed to buy Reabold California, LLC, a subsidiary of Reabold Resources plc, a UK firm listed on the AIM Market of the London Stock Exchange under the ticker RBD.

Reabold California owns a 50% working interest and operates 10 producing wells in the Sacramento Basin in Northern California with proved reserves of 613,000 barrels of oil equivalent. After the transaction is completed, Daybreak will have 1,085,000 barrels of proved oil equivalent with a value of approximately $17.0 million. Reabold California’s production is approximately 70 barrels of oil per day. Combined, the production would be approximately 100 barrels of oil per day.

The acquisition will be an all-stock transaction where Gaelic Resources Limited, a wholly-owned subsidiary of Reabold Resources plc, will own up to 45% of Daybreak’s common stock at closing. As part of the transaction, Daybreak will also be raising approximately $2.5 million through the sale of its common stock to fund development programs in both the Sacramento Basin properties as well as its San Joaquin Basin properties.

The transaction is expected to close in Q1 2022.

The recent price spike came after DBRM filed an 8-K with the SEC, saying that it had finalized agreements with its directors, executive officers, and other employees with respect to the forgiveness and conversion of related party debts into shares of common stock at a conversion rate of $0.45 per share of common stock.

Completing this Debt Conversion is a condition to closing the previously disclosed Equity Exchange Agreement dated as of October 20, 2021 entered into by and among the Company, Reabold California LLC, a California limited liability company, and Gaelic Resources Ltd, pursuant to which Daybreak will acquire Reabold in exchange for issuing 160,964,489 shares of its common stock to Gaelic.

All in all, this is a bargain price for an OTC stock that can end up with a valuation of over $200 million – at least that’s what Reabold’s assets might be valued at.