In Doral Energy recent phase 0 – stage 1 work program, is financed from its current credit facility and field cash flow, the company was able to re-work and repair 17 wells. The results of this initial work program exceeded the pre-job incremental production approximations by 1.64 times, while spending only 84% of the pre-job anticipated AFE costs. Doral Energy has previously recognized an additional 75 wells requiring similar repair job workovers in its Hanson properties where it considers comparable production development could be achieved, potentially adding tremendous near-term upside.

Subject to the accessibility of financing, Doral Energy anticipates to carry on this work effort and to raise oil and gas production all through the remainder 2009. The company’s operating team has major experience in the region and a track record of success in rising production and arresting production decline rates from wells concluded in these reservoirs.

Capital Budget

Doral Energy announced that it anticipates spending about $10 million before December 31, 2009. This amount will provide capital for expected acquisitions, which includes the proposed Miltex properties acquisition, plus the capital expenditures to repair production equipment, conduct additional workovers, and drill infill proved undeveloped sites within Doral Energy’s accessible leasehold acreage.

Drilling Obligations

At present, Doral Energy does not have any drilling obligations. Doral Energy targets and has successfully acquired only producing properties and acreage that is categorized as HBP (held by production). This strategy permits Doral Energy to dictate when and how many development wells are to be drilled on its acreage, thus allowing the company to control its own destiny. At today’s lower oil and gas prices, many of Doral Energy’s competitors are being forced to either deploy capital to drill currently un-economical or marginally-economical wells, rather than jeopardize losing their leasehold acreage due to onerous lease development drilling obligations.

Doral Energy will carry on to hold to this strategy for all future acquisitions, thus adhering to the company’s philosophy of acquiring undervalued assets that can be exploited either through repair job workovers, or infill drilling opportunities.

Management Comments

Mr. E. Will Gray II, chief executive officer and vice chairman of Doral Energy said; I am very pleased with the success we have enjoyed to date. Our senior management’s ability to increase daily production and reserves over such a short period of time and with so little capital expenditure proves our business strategy is sound and that we have the right people in place to execute that strategy. Mr. Gray went on to say, We have set several major goals that we hope to achieve prior to the end of 2009. These goals include, in no particular order:

– Completing an independent third-party reserve report.

– Acquiring a more traditional senior revolving credit facility that provides a large enough borrowing base to re-finance Doral Energy ‘s current $50 million credit facility provided by Macquarie Bank Limited.

– Submitting an application to the NYSE Amex for a listing on a more senior exchange in an effort to attract more long term investors.

– Achieving daily production in excess of 600 BOEPD via both organic growth as well as additional M&A activity.

– Identifying qualified people to add to Doral Energy’s board of directors to meet the requirements of the NYSE Amex.

We certainly have our work cut out for us, but I have every confidence that we have the right people in place at Doral Energy to meet all of these objectives in a timely and cost effective manner.