Two projects updated by Doral Energy Corp.

The two projects that Doral Energy Corp is providing an update for include the recompletion of the Doral Federal S No. 7 well as a Grayburg/San Andres completion; and the improvement of waterflood operations in the West Artesia Grayburg Unit.

The latest on Federal S No. 7 Recompletion is that Doral Energy's engineers and geologists have assessed the modern logs run on the Federal S No. 7 well and have identified several prospective pay intervals in the well.  Marty Bloodworth, Doral Energy's Vice President of Operations stated, "We are pleased that the modern logs run in the Federal S No. 7 well indentified multiple pay intervals in the Grayburg/San Andres formations. The first interval we perforated had both good pressure and high oil cuts on the fluid samples. We look forward to being able to stimulate this interval to determine its full potential. We are still experiencing delays in frac equipment availability, but hope to have them resolved shortly. We will keep our shareholders informed as we continue to develop the multiple pay intervals in this well."

West Artesia Grayburg Unit has added injection perforations to a second water injection well ("WIW") in the Unit, showing very good results.  Doral has also completed mechanical repair jobs and updated the production equipment in two Unit producing wells, the WAGU No. 3 and the WAGU No. 22 wells, in addition to the work on the WAGU No. 1 and WAGU No. 4 water injection wells.  When asked about the potential of the West Artesia Grayburg Unit, Mr. Bloodworth stated, "The development of this Unit is a fine example of Doral's exploitation company business model. We apply modern techniques to exploit bypassed pay in wells neglected by previous operators. In this Unit our engineers and geologists have identified numerous bypassed pay intervals in the producer wells and a lack of conformance with the injection wells. They further discovered that the historical lack of supply water hindered production response from the wells in the WAGU. Doral has located an ample source of supply water for the waterflood, and we are moving forward with our plan to improve the conformance and increase oil production from the WAGU."

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About Doral Energy Corp.

Doral Energy Corp. (OTCBB:DRLY) is an oil and gas exploitation and production company headquartered in Midland, Texas. Doral Energy Corp.'s strategy is to grow a portfolio of under-developed production and exploitation assets with the potential for generating near-term increases in existing production through operational improvements, and longer-term development of proved undeveloped reserves by infill drilling. Doral focuses on identifying acquisitions that generate immediate cash flow from production, but which also have strong proved developed non-producing and proved undeveloped reserves that can be tapped for significant growth. The prolific Permian Basin of Texas and New Mexico is the geographic region of focus for the Company's future acquisition activity. Doral's first producing assets, the Hanson Properties in Eddy County, New Mexico, located in the northwestern Permian Basin of New Mexico, are currently producing 135 BOEPD.

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