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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 12, 2007

DAYBREAK OIL AND GAS, INC.

(Exact Name of Registrant as Specified in its Charter)

Washington	000-50107	91-0626366
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

601 W. Main Ave., Suite 1012 Spokane, WA	99201
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (509) 232-7674

N/A

(Former Name or Former Address if Changed Since Last Report)

Check the appropriate box below if the Form 8K fining is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[   ] Written communications pursuant to Rule 425 under the Securities Act (17CFR230.425)

[   ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)

[   ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[   ] Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

SEC 873  (6-04)                                Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

ITEM 1.01  ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

Daybreak Oil and Gas, Inc. (“Daybreak”), has agreed to participate in a farmin agreement with Chevron U.S.A., Inc. (“Chevron”) for a 3-D seismic program in the San Joaquin Basin in southern California. Under the terms of the agreement, Chevron will fund 100% of the cost of the seismic program and thereby earn a 50% interest in the East Slopes Project area in Kern County, California.

Daybreak and its partners (“Partners”) will drill three wells on mutually agreed prospects generated from the seismic program. The Partners will then hold a 50% interest in lands contributed by Chevron.

The seismic farmin agreement is included in this report as Exhibit 99.1

ITEM 7.01  REGULATION FD DISCLOSURE

On July 12, 2007, Daybreak Oil and Gas, Inc. issued a press release announcing the seismic farmin agreement with Chevron U.S.A., Inc. This press release is included as Exhibit 99.2

This information is being disclosed pursuant to Regulation FD. Accordingly, the information in Exhibit 99.2 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1934, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01  FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

99.1 Seismic Option Farmin Agreement

99.2 Press Release from July 12, 2007

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DAYBREAK OIL AND GAS, INC.

By: /s/ Thomas Kilbourne                                                      

Thomas Kilbourne, Treasurer

Date:  July 16, 2007

EX-99.1

Exhibit 99.1

EX-99.2

Exhibit 99.2

Daybreak Enters Into Agreement With Chevron U.S.A., Inc.

Spokane, Washington – July 12, 2007 - Daybreak Oil and Gas, Inc. (OTC Bulletin Board: DBRM. PK) (“Daybreak”) a Washington Corporation, today announceda Seismic Option Farm-Out Agreement (the “Agreement”) with Chevron U.S.A., Inc. (“Chevron”).  Under the terms of the agreement, Chevron will fund 100% of the cost of a 3-D seismic survey in the San Joaquin Basin in southern California.

Daybreak and its Partners (the “Partners”) and Chevron will contribute approximately 16,000 and 3,000 gross acres of mineral leases respectively for a 33 square mile high definition 3-D exploration seismic survey.  After processing and interpretation of the seismic data, the Partners will drill 3 wells on mutually agreed prospects.  The Partners as a group and Chevron will then each hold a 50% interest in the lands and wells.

The 3-D high definition survey will be the first modern data acquisition over the survey area.  Drilling targets are highly porous and permeable sandstone reservoirs containing 15o API to 25o API crude oils at depths of 1,200 feet to 3,000 feet, and are therefore relatively inexpensive to drill.

It is expected that the seismic survey will commence in the third quarter of 2007.

Daybreak will retain a 25% interest in the seismic option lands with no further cost through completion of the seismic program, and will retain a 50% interest in its other oil and gas assets in California.

For information about Daybreak Oil and Gas, Inc., please contact:

Eric Moe	Telephone:	(509) 465-4541
	Email:	emoe27@aol.com
Mike McIntyre	Telephone:	(604) 484-6243
	Email:	mike.mcintyre10@gmail.com

Safe Harbor Statement

“Safe Harbor” Statement under Private Securities Litigation Reform Act of 1995: Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Information contained herein contains “forward-looking statements” which can be identified by the use of forward-looking terminology such as “believe”, “expect”, “may”, “should”, “up to”, “approximately”, “likely”, or “anticipates” or the negative thereof or given that the future results covered by such forward looking statements will be achieved. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.