Daybreak Oil and Gas Inc (DBRM)

[xiws]

10K quick summary - growth & challenges
Nearly 100% revenue growth, not quite that in bbls, and a 25% drop in LOE costs over the past year
2011 Revenue $975,479 from 13,009 bbls at $173,234 LOE cost
2010 Revenue $469,357 from 7,480 bbls at $240,607 LOE cost

Average LOE cost has dropped from $32.17 to $13.32

Indebtedness is high, and drains cash from revenues

Electric service to Dyer Creek was finished in March 2011, which will drop production costs substantially

Additional drill locations identified:
At least 3 in Sunday
At least 3 in Bear
At least 2 in Black
At least 2 in Ball
At least 1 in Dyer Creek

Notes on new areas with combined estimated gross reserves of a bit over 9 million barrels:
Bull Run Prospect
Glide-Kendall Prospect
Sherman Prospect
Baker Prospect
Breckenridge-Chimney Prospect
Tobias Prospect

No legal issues at this time

Cash is low ($57K), assets went up. Liabilities went up a good bit too, mostly due to drilling costs and production facilities.
I like this note about how the lower cost of production
"should assist us in maintaining a positive cash flow from our East Slope operations in Kern County, California during the next fiscal year."
Positive cash flow from operations.
For the year ended February 28, 2011, we had a positive cash flow from operating activities of $184,673,

A good note on efficiency:
"For the years ended February 28, 2011 and 2010, we did not drill any dry holes"
$329,834 (from original $1.5m) still accounts payable as part of the acquisition of rights and becoming operator