Daybreak Oil and Gas Inc (DBRM)

[xiws]

Production facilities for new wells
The new Dyer Creek and Ball locations are too far from the new production buildings to use those - which is good news in terms of being new taps into other deposits, but unfortunate in terms of requiring new production facilities. The good news, as of a conversation with mgt, is that there is an existing production building in the area from previous operators that is older and unused. Refit of that building will cost just a fraction of building a new one. And it can service both Dyer Creek and Ball and anticipated expansion in that area. So the time and capital costs to get going there are a lot lower than they were with expensive new construction building and tanks at Bear and Sunday.