Daybreak Oil and Gas Inc (DBRM)

[xiws]

Annual report released this evening
http://www.sec.gov/Archives/edgar/data/1164256/000117120010000539/0001171200-10-000539-index.htm

Lots to look at. Obvious first pass stuff:
Revenues up 98% over 2009. Finally generating cash.
$469K in California in FY2010
$ 2K in California in FY2009
Still not huge amounts, but consider that the first few quarters of FY2010 were low, since they didn't have many wells running and the perm production facilities were not in place. The 3Q quarterly report showed $285K for the 9 months.

If I put these together, it seems as through they generated about $185K in 4Q alone, just from California.

And that was still not in full speed production for the entire time. Production is ramping up.
Production facility for Sunday, et al was completed in 2009 - so the production costs started dropping toward the end of the year. Lower cost and ability to raise well production by some amount.

They did mention the new Dyer Creek and related work, as well as the rather late (March 2010) business work that resulted in more cash for operations. These are definitely positives going into FY2011.

So - some big questions:
1) With the wells they have in production now, which are in full volume and how much are they producing? By the end of 4Q2010 I suspect that they had most of the wells running at close to full speed. Maybe not. Black #1 went into production in Jan, so perhaps not at full speed, and certainly not there for the whole quarter. Anyone know that answer?

2) Bear #3 and #4 were completed in April, so these numbers are not in the mix yet. DBRM says they plan to drill 3 more in the Bear prospect this FY. All these would be additive, and at least 2 are known to produce.

3) They have a few new wells that they are working on, but what stage are they really at? I don't think that they have actually started drilling. They seem pretty positive that they wells will produce, and the track record is good, but how quickly? Will these be generating by Aug2010 (2Q FY2011)? Can they have production facilities in Dyer Creek up and running by then?

That's a first pass. Other first impressions?