2009-04-30-2009-04-30

To acquire two Permian Basin companies, gaining 81 BOE/d, 4MMBOE proved in Cochran, Hockley counties, TX.

Doral Energy Corp., Midland, (OTCBB:DEGY) plans to acquire two undisclosed Permian Basin operators with producing properties in Cochran and Hockley counties, Texas, for $5.9 million total. The assets include 89% working interest (63% average net revenue interest) in 3,560 acres, all held by production. Producing fields include Levelland, Levelland NE, Smyer, and Clauene North with depth rights ranging from 5,500 to 8,500 feet. Current gross production is 128 barrels of oil equivalent per day (81 barrels net; 80% oil) from 53 producing wells. Other assets include two water injection wells and five shut-in wells. Proved reserves are 4 million barrels of oil equivalent Upside includes 99 proved undeveloped infill drilling locations based on 20-acre spacing. Closing is expected by June 30.