RETRANSMISSION: Derek Updates LAK Ranch Progress

VANCOUVER, BRITISH COLUMBIA . The table in the release was missing its column headers. The updated release now follows.

The Company is pleased to report continued progress on its LAK Ranch heavy oil project. The following table summarizes performance since completion of this year's drill program:

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             Daily Average
                  Combined     Total Combined            Value of
                Production          Shipments         Oil Shipped
                 for Month       During Month        During Month
Month/Year           (bopd)            (bbls.)              (US$$)
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August-07            18.00             482.81        $  31,574.08
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September-07         15.83             243.31        $  16,692.53
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October-07           25.84             958.78        $  69,353.16
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November-07          54.90           1,862.00        $ 130,340.00
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As shown in the table, average daily production, monthly oil shipments, and gross oil receipts per month are all increasing as the reservoir receives more steam. The production should increase for the next several months as the reservoir in the area of the new wells heats up.

Derek Oil & Gas Corporation is a Canadian based, publicly traded oil exploration, development and production company that utilizes enhanced oil recovery (EOR) techniques to develop new production from reservoirs in North America. Derek's current focus is on the further development and increasing production from their prime property located in NE Wyoming's prolific Powder River Basin.

Derek Oil & Gas Corporation trades in Canada on the TSX Venture Exchange with the symbol DRK.

ON BEHALF OF THE BOARD

Mr. Barry C.J. Ehrl, President and C.E.O.

This document includes forward- looking statements. Forward-looking statements include, but are not limited to, the continued advancement of Derek Oil and Gas's LAK Ranch project. When used in this document, the words "potential", "plan", "could", "estimate", "expect", "intend", "may", "should", and similar expressions are intended to be among the statements that identify forward-looking statements. Although Derek believes that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that Derek's LAK Ranch project will experience technological and mechanical problems, geological conditions in the reservoir may not result in commercial levels of oil and gas production, and other risks.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

Contacts: Derek Oil & Gas Corporation Corporate Communications Department 1-888-756-0066 or [phone] [phone] (FAX) Email: [e-mail] Website: www.derekoilandgas.com