Daybreak Announces Successful Oil Well - Kicks Off Six Well Drilling Program to Develop California Oil Project

SPOKANE, Wash., May 7, 2013 /PRNewswire/ -- Daybreak Oil and Gas, Inc. (OTCBB: DBRM) ("Daybreak" or the "Company"), a Washington corporation, is pleased to announce the results of the first well in the initiation of a six well drilling program at the East Slopes Project in Kern County, California.  The Bear #5 Well was drilled to 2,300 feet and encountered approximately 30 feet of oil pay in the Vedder Sand.  The Well is currently being completed and will be put on production within a week.  Production results will be announced following production testing.  The Bear #5 Well will be produced into the Company's Sunday Central Processing Facility nearby.  The drilling rig has been moved to drill the Bear #6 Well, which was spud on May 6, 2013.  The Bear #6 Well is the second well in the six well drilling program currently underway.  The Company owns a 37.5% working interest in the Bear wells.  The Company has contracted for a larger rig to drill its Chimney exploratory well and two of the development wells in the program.  This rig is expected to be available during the latter part of May, 2013.

James. F. Westmoreland, President and Chief Executive Officer, commented "In preparation of our drilling program, we laid flow lines and provided electrical hook ups to all our development well locations.  This will allow us to put our wells on production quickly as we get them completed; no other work will be needed.  We should see immediate results in terms of production, including faster cash flow as a result of our pre–planning."

Daybreak Oil and Gas, Inc. is an independent oil and gas company engaged in the exploration, development and production of oil and gas in California.  The Company is headquartered in Spokane, Washington with an operations office in Friendswood, Texas.  Daybreak owns a 3-D seismic survey that encompasses over 20,000 acres over 32 square miles with approximately 13,000 acres under lease in the San Joaquin Valley of California.

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Inergy Midstream Reports Second Quarter Results

KANSAS CITY, Mo.--(BUSINESS WIRE)--Inergy Midstream, L.P. (NYSE:NRGM) (“Inergy Midstream”) today reported results of operations for the quarter ended March 31, 2013, the second quarter of fiscal 2013.

Inergy Midstream reported Adjusted EBITDA of $42.6 million for the quarter ended March 31, 2013, an increase of $12.6 million, or 42%, from $30.0 million for the quarter ended March 31, 2012. Net income was $3.2 million for the quarter ended March 31, 2013, and $16.4 million in the same quarter of last year.

Distributable cash flow was $32.7 million for the quarter ended March 31, 2013, compared to $26.4 million in the same quarter of last year, an increase of $6.3 million, or approximately 24%.

Inergy Midstream reported Adjusted EBITDA of $75.6 million for the six months ended March 31, 2013, an increase of $15.1 million, or 25%, from $60.5 million for the six months ended March 31, 2012. Net income was $9.7 million for the six months ended March 31, 2013, and $34.0 million in the same period of last year.

Distributable cash flow was $62.2 million for the six months ended March 31, 2013, compared to $52.3 million in the same period of last year, an increase of $9.9 million, or approximately 19%.

“We are pleased to report solid quarterly results that exhibit material growth from one year ago and that are in line with our expectations,” said John Sherman, President and CEO of Inergy Midstream. “We continue to see stable fundamentals and performance in our natural gas storage and transportation business. The recently acquired crude oil logistics business is performing ahead of plan and is expected to create additional growth opportunities.”

Recent Events

As previously announced, the Board of Directors of Inergy Midstream’s general partner declared a cash distribution of $0.395 per limited partner unit ($1.58 annually) for the quarter ended March 31, 2013. The distribution will be paid on May 15, 2013.

Also as previously announced, Crestwood Midstream Partners LP (NYSE: CMLP) (“Crestwood”) and Crestwood Holdings LLC and Inergy, L.P. (NYSE:NRGY) (“Inergy”) and Inergy Midstream, L.P. announced the signing of definitive agreements to create a fully integrated midstream partnership with a total enterprise value of approximately $7 billion. For a complete description of these agreements, see the 8-K filed on May 6, 2013.

Quarterly Results

In the quarter ended March 31, 2013, revenues increased to $63.8 million compared to $46.9 million during the same quarter in the prior year.

In the quarter ended March 31, 2013, service/product-related costs increased to $12.8 million compared to $11.0 million during the same quarter in the prior year.

In the quarter ended March 31, 2013, operating and administrative expenses were $13.3 million compared to $6.8 million in the same period of fiscal 2012.

Year-To-Date Results

In the six months ended March 31, 2013, revenues increased to $114.2 million compared to $93.7 million during the same period in the prior year.

In the six months ended March 31, 2013, service/product-related costs increased to $23.7 million compared to $22.1 million during the same period in the prior year.

In the six months ended March 31, 2013, operating and administrative expenses were $25.0 million compared to $12.9 million in the same period of fiscal 2012.

Inergy Midstream, L.P. and Inergy, L.P. will conduct a live conference call and internet webcast today, May 7, 2013, to discuss results of operations for the quarter ended March 31, 2013, and their business outlook. The call will begin at 10:00 a.m. Central Time. The call-in number for the earnings call is 1-877-405-3427, and the conference name is Inergy. The live internet webcast and the replay can be accessed on Inergy’s website, www.inergylp.com. A digital recording of the call will be available for one week following the call by dialing 1-855-859-2056 and entering the pass code 57678868.

About Inergy Midstream, L.P.

Inergy Midstream, L.P., headquartered in Kansas City, Missouri, is a publicly traded master limited partnership engaged in the development and operation of natural gas, NGL and crude oil storage, transportation, and logistics businesses in the Northeast region of the United States and in North Dakota.

About Inergy, L.P.

Inergy, L.P., headquartered in Kansas City, Missouri, is a publicly traded master limited partnership. Inergy's operations include a natural gas storage business in Texas and an NGL supply logistics, transportation, and marketing business that serves customers in the United States and Canada. Through its general partner interest and majority equity ownership interest in Inergy Midstream, L.P., Inergy is also engaged in the development and operation of natural gas, NGL and crude oil storage, transportation, and logistics businesses in the Northeast region of the United States and in North Dakota.

Corporate news, unit prices, and additional information about Inergy Midstream, including reports from the United States Securities and Exchange Commission, are available on the company’s website, www.inergylp.com. For more information, contact Vince Grisell in Inergy Midstream’s Investor Relations Department at 816-842-8181 or via e-mail at investorrelations@inergyservices.com.

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Osage Exploration and Development Releases Initial Production Rate of 557 BOE from Horizontal Mississippian Well

SAN DIEGO--(BUSINESS WIRE)--Osage Exploration and Development, Inc. (OTCBB:OEDV), an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, announced today preliminary production results on the Blevins 1-7H Horizontal Mississippian well in Logan County, Oklahoma. The Blevins 1-7H, located in Section 7-17N-3W and operated by Stephens Production Company, achieved one-day peak production of 557 BOE on a gas lift and has averaged 466 BOE in the seven days since that peak.

Management Comments

“The Blevins 1-7H is further indicative that the decision to look to Logan County as the cornerstone of our Horizontal Mississippian and Woodford exploration was the correct one,” stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration and Development. “We have been able to replicate the results generated with our project operator Slawson Exploration Company, Inc. and also with other top quality oil companies that we participate with, such as Devon Energy Corporation and Stephens Production Company. While this is somewhat at odds with the conventional wisdom regarding the high variability of results to be expected in the Miss Lime, we are seeing a growing consistency across not only our entire area but also across operating teams and methods. This boosts our confidence even more.”

About Osage Exploration and Development, Inc.
Based in San Diego, California, with production offices in Oklahoma City, Oklahoma, and executive offices in Bogotá, Colombia, Osage Exploration and Development, Inc. is an independent exploration and production company with interests in oil and gas wells and prospects in the U.S. and Colombia. http://www.osageexploration.com

About Slawson Exploration Company, Inc.
Headquartered in Wichita, Kansas, with regional offices in Denver, Houston, and Oklahoma City, Slawson began oil and gas exploration in 1957. http://www.slawsoncompanies.com/exploration.html

About Stephens Production Company
Stephens Production Company (SPC) explores for and produces natural gas and oil. Acquired in the early 50's through a series of acquisitions, SPC is one of the largest privately owned, independent natural gas companies in the U.S. The company, headquartered in Fort Smith, Arkansas, is active in Arkansas, Oklahoma, Texas, Louisiana, Mississippi, Colorado, Wyoming and the Gulf of Mexico. http://www.stephensgroup.com/aboutourpartners/currinv-energy.html

About Devon Energy
Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is a leading U.S.-based independent oil and gas producer and is included in the S&P 500 Index. http://www.devonenergy.com

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Dow Confirms Receipt of $2.2 Billion in Cash Proceeds from Petrochemical Industries Company of Kuwait

MIDLAND, Mich.--(BUSINESS WIRE)--The Dow Chemical Company (NYSE: DOW) is pleased to announce that it has completed final resolution of the K-Dow arbitration with Petrochemical Industries Company of Kuwait (PIC), and confirms today that Dow has received a direct cash payment of $2.2 billion from PIC. Payment reflects the full damages awarded by the International Chamber of Commerce, as well as recovery of Dow’s costs.

“Dow and Kuwait share a long history, and payment of this award brings final and appropriate resolution and closure to the issue,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “Our partnership with Kuwait includes several industry-leading joint ventures, which are valuable assets in Dow’s portfolio and have consistently returned accretive equity earnings to Dow. We continue to look for ways to strengthen our relationships within the country for the benefit of our partners and Dow shareholders.”

“Receipt of this award enables Dow to accelerate actions that are in line with our stated priorities for uses of cash – foremost of which is paying down debt and remunerating shareholders,” Liveris added. “Our actions moving forward will be consistent with this approach.”

About Dow

Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world's most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow's diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2012, Dow had annual sales of $57 billion and employed approximately 54,000 people worldwide. The Company's more than 5,000 products are manufactured at 188 sites in 36 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.

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LRR Energy, L.P. to Acquire Oil and Gas Producing Properties in Oklahoma from Lime Rock Resources

HOUSTON--(BUSINESS WIRE)--LRR Energy, L.P. (NYSE: LRE) (“LRR Energy” or “LRE”) announced today that it signed a definitive agreement to acquire oil and natural gas properties in the Mid-Continent region in Oklahoma and crude oil hedges from its sponsor, Lime Rock Resources, for a purchase price of $38.2 million, subject to customary purchase price adjustments. The effective date of the transaction will be April 1, 2013, and closing of the transaction is expected to occur on or about April 1, 2013, and is subject to customary approvals and closing conditions. LRE plans to finance the transaction with borrowings under its existing revolving credit facility.

Terms of the transaction were approved on March 18, 2013, by the Board of Directors of the general partner of LRE. The Board's conflicts committee, which is comprised entirely of independent directors, approved the terms of the transaction on March 18, 2013.

Eric Mullins, Chairman and Co-Chief Executive Officer, commented, "We are very pleased to announce our third acquisition from our sponsor, Lime Rock Resources. The transaction includes liquids-weighted, low decline producing assets, which are expected to provide a steady stream of cash flow. The proven reserves are entirely proved developed producing, making them well suited for LRR Energy.” Charlie Adcock, Co-Chief Executive Officer, noted, “These assets will be a great addition to our Mid-Continent footprint, and we expect the assets to be immediately accretive to distributable cash flow per unit.”

The properties are located in Grady, Garvin, Stephens and Carter Counties, Oklahoma.

Transaction Highlights:

• Estimated net proved reserves of approximately 1,916 MBoe (based on Miller & Lents reserve report with strip pricing of February 19, 2013 and an effective date of April 1, 2013)

• Based on year-end SEC prices of $94.71/Bbl and $2.76/MMBtu, estimated net proved reserves of approximately 1,655 MBoe (based on an internal reserve report with an effective date of April 1, 2013)

• Approximately 84% of proved reserves are oil

• 100% of proved reserves are proved developed producing

• Current net production of approximately 335 Boe per day

• Proved reserves to production ratio of 15.7 years

• 3-year average annual PDP decline rate of 6%

• Approximately 315 producing wells, none of which are operated

• Estimated annualized 2013 cash flow from operations of approximately $6.1 million

• Estimated annual maintenance capital expenditures of $1.1 million

Financial Highlights:

The acquisition is expected to be immediately accretive to distributable cash flow per unit. As part of this transaction, LRE will acquire the following crude oil hedges, which LRE currently estimates to be valued at approximately $0.6 million:
      Index       2013       2014
Oil positions
Price swaps (BBLs) NYMEX-WTI 38,250 30,000
Weighted average price $ 102.75 $ 98.20


The conflicts committee engaged Tudor, Pickering, Holt & Co. Securities, Inc. to act as its financial advisor and Bracewell & Giuliani LLP to act as its legal advisor.

About LRR Energy, L.P.

LRR Energy is a Delaware limited partnership formed in April 2011 by affiliates of Lime Rock Resources to operate, acquire, exploit and develop producing oil and natural gas properties in North America. LRR Energy's properties are located in the Permian Basin region in West Texas and southeast New Mexico, the Mid-Continent region in Oklahoma and East Texas and the Gulf Coast region in Texas.

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