SPOKANE, Wash., Jan. 23, 2006 (PRIMEZONE) -- Genesis Financial, Inc. (Pink Sheets:GFNL) announces that they have agreed to make a $210,000 loan to Daybreak Oil & Gas, Inc. (OTCBB:DBRM) to finance drilling and completion costs on a well DBRM has drilled in Tensas Parish, Louisiana. DBRM has borrowed $60,000 of the loan proceeds to date. GFNL expects the balance of the loan to be advanced later this week.
The loan is convertible into shares of DBRM restricted common stock at a conversion price of $0.25 per share. If the loan is fully funded, this would equate to 840,000 shares. GFNL also received 42,000 shares of common stock as a fee for providing the financing.
As of this morning, DBRM announced that it has reached the target depth of 8,350 feet on the well, and management is evaluating the results of the well logging.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by the use of forward looking terminology such as "may", "will", "intend", "expect", "anticipate", "estimate", or "continue", or the negatives thereof or comparable terminology. The Company's actual results could differ materially from those anticipated in such forward looking statements as a result of certain factors, including, but not limited to, economic conditions, product demand, competitive products and pricing, and/or state and federal regulations.