Daybreak Oil and Gas, Inc. announce that the Gerald Grove H-3 well, in Lawrence County, Kentucky, was placed on production on December 21, 2013. The well has produced and sold approximately 3,303 barrels of oil during this time period. The well is experiencing very large initial production rates, and thus production had to be voluntarily slowed due to storage capacity constraints.
The well has only been producing a limited number of hours during daylight due to storage capacity issues. The eastern portion of Kentucky has also been experiencing inclement weather which inhibits tanker trucks from accessing the well location, thus slowing the distribution process of the produced oil. On a daily basis it is estimated that the well was producing at a rate of approximately 300-325 barrels of oil per day ("BOPD").