Replies to post #458 on Daybreak Oil and Gas Inc (DBRM)

[downsideup]

DBRM won summary judgment in the COGC lawsuit:

In a lawsuit filed on January 12, 2008, in East Baton Rouge Parish, State of Louisiana, entitled, “Daybreak Oil and Gas, Inc. v. California Oil & Gas Corporation, Suit No. 562933, Section 24, 19th Judicial District Court,” Daybreak sought judgment for the full balance of $587,465 owed under a joint operating agreement for the Krotz Springs Field project, together with legal interest thereon from the date of judicial demand until paid, for reasonable attorney fees on both principal and interest, and all costs of the proceedings.

Under the Krotz Springs Field joint operating agreement, California Oil & Gas Corporation (“COGC”) was responsible for twenty-five percent (25%) of the working interest costs of the drilling and completion of the KSU # 59 ( formerly Haas-Hirsch #1) well in the Krotz Springs Field project. As part of the drilling and completion of the KSU # 59 well, Daybreak incurred certain costs and expenses on behalf of the various working interests associated with the well. COGC was periodically sent invoices for its 25% share of these costs. COGC has made partial payments pursuant to these periodic invoices, but has not made full payment.

As a result, Daybreak has instituted this lawsuit. Service of this lawsuit was perfected on COGC in Calgary, Alberta, Canada. On November 17, 2008, a hearing was held in which Daybreak requested a summary judgment against COGC. The request was granted and on December 9, 2008, a written order for summary judgment against COGC was entered by the court. We are currently in discussions with COGC to determine how the summary judgment will be satisfied.

In partial payment of its amounts owed, COGC has assigned its revenue interest in the production revenue from the KSU #59 well to Daybreak. As of November 30, 2008, Daybreak has received $158,578 in net production revenue less monthly lease operating expenses for the months of May 2007 through September 2008. These funds have been applied against the delinquent receivable balance leaving an outstanding balance of $ 457,409 as of November 30, 2008.