DPE Drake Energy Ltd.

Drake Energy Ltd. (TSX VENTURE:DPE)

Operations Overview 

With strong oil prices being forecast and with a strategy to balance its oil and
natural gas production, Drake Energy Ltd. ("Drake" or "the Company") has focused
on its oil prospects for the 2009/2010 winter program. Oil wells were drilled
and/or re-entered at Enchant, Sousa, and Jenner. In addition, gas optimization
programs were implemented at Sousa, Jenner, and Retlaw. 


Retlaw Gas Optimization 

The gas optimization program at Retlaw resulted in a 50% increase in production
at the 12-32 well to 300 Mcfd. The area now produces 31 (net) barrels of oil
equivalent per day (BOED) for Drake. 


Jenner Oil and Gas Optimization 

The optimization program at Jenner resulted in the re-activation of the 13-06
gas well. The details will be released in the following weeks. 


Sousa Gas Optimization 

The optimization program at Sousa included the re-entry of a well at 12-21 and
further optimization work at the 11-12 and 13-12 wells. Upon re-entry, the 12-21
well-bore was determined to be in very poor condition and the well was
abandoned. The 11-12 and 13-12 wells appear to have positive increases in gas
production and new production of NGLs but details will not be released until
next week to allow for further testing and validation. 


Sousa Oil Program 

The oil program at Sousa included the optimization of a producing well at 09-02
and the re-entry of a horizontal well at 01-24. Both programs are nearly
completed and are in the testing stages. Details should follow next week. Both
wells have follow up locations under consideration. 


Enchant Oil Program 

At Enchant the Company did a re-completion of an existing well at 06-02 and
drilled a well at 05-25. Both programs are in progress with results expected in
February. Both wells have follow up locations under consideration. 


Current Production 

"In the last half of 2009, Drake shut in production due to low natural gas
prices," said Drake president, Mr. Neil Orr. "Production for the third quarter
averaged only 129 BOED and remained curtailed throughout the remainder of the
year. With the re-activation of the shut-in wells and the success of our winter
program, we have an approximate current field level production of 250 BOED
representing almost a 100% increase from third quarter production levels. 2009
was an exceptionally difficult year for the industry and for the Company.
Determined to break out of the malaise, we ran an aggressive winter program
which has produced positive results. Our oil program appears to be on track to
produce one of our best wells yet." 


Drake Energy Ltd. is active in oil and gas exploration and development in
Alberta. Headquartered in Calgary, Alberta, Canada, the Company is publicly
traded on the Toronto Stock Exchange Venture Board under the stock symbol DPE.V.



This news release contains forward-looking information. Implicit in this
information are assumptions regarding commodity pricing, production, royalties
and expenses that, although considered reasonable by the Company at the time of
preparation, may prove to be incorrect. These forward-looking statements are
based on certain assumptions that involve a number of risks and uncertainties
and are not guarantees of future performance. Actual results could differ
materially as a result of changes in the Company's plans, commodity prices,
equipment availability, general economic, market, regulatory and business
conditions as well as production, development and operating performance and
other risks associated with oil and gas operations. There is no guarantee made
by the Company that the actual results achieved will be the same as those
forecasted herein. Barrel of oil equivalent ("boe") amounts may be misleading,
particularly if used in isolation. A boe conversion ratio has been calculated
using a conversion rate of six thousand cubic feet of natural gas to one barrel
and is based on an energy equivalent conversion method application at the burner
tip and does not necessarily represent an economic value equivalent at the
wellhead.

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