8-K

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): April 30, 2008

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 filing 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))

Item 1.01 Entry Into a Material Definitive Agreement

Items 2.01 and 8.01 are incorporated herein by reference.

Item 2.01 Completion of Acquisition or Disposition of Assets.

On May 1, 2008, Daybreak Oil and Gas, Inc. (“Daybreak” or the “Company”), issued a press release announcing that the Company completed the amended second closing on the sale of its Tuscaloosa Project properties located in Tensas and Franklin Parishes, Louisiana.  On April 30, 2008, Daybreak received $500,000 in exchange for the transfer of 6.25% of the Company's original ownership interest in the properties.  As reported previously, Daybreak received $2,000,000 on January 18, 2008, in exchange for 25% of its interest.  Under terms of the original Purchase and Sale Agreement, Daybreak and the purchaser contemplated two separate closings for 100% of Daybreak's interests for a total purchase price of $8,000,000.  As amended, the final closing in the amount of $5,500,000 for the balance of the Company's interest is scheduled to occur on or before May 31, 2008.  This final closing will be subject to customary allowances.

Item 8.01 Other Events.

A copy of the press release announcing an update and amendment to the closing of the sale of property interests located in Tensas and Franklin Parishes, Louisiana, as amended is attached to this report as Exhibit 99.1 and is incorporated herein by reference. Under terms of the original Purchase and Sale Agreement, Daybreak and the purchaser contemplated two separate closings for 100% of Daybreak's interests for a total purchase price of $8,000,000.  In connection with the amended second closing, Daybreak and the purchaser entered into a Letter Agreement to Amendment, attached hereto as exhibit 99.2 and incorporated herein by reference. As amended, the final closing in the amount of $5,500,000 for the balance of the Company's interest is scheduled to occur on or before May 31, 2008.  This final closing will be subject to customary allowances.

Item 9.01 Financial Statements and Exhibits.

d) Exhibits:

99.1 Press Release dated May 1, 2008

99.2 Letter of Agreement to Amendment

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/ James F. Westmoreland                                                                

James F. Westmoreland, Chief Financial Officer

Date:  May 2, 2008

Exhibits

99.1 Press Release dated May 1, 2008

99.2 Letter of Agreement to Amendment

EX-99.1

Exhibit 99.1

Daybreak Announces Amended Second Closing on Sale of Louisiana

Oil and Gas Properties;

Updates California Project

SPOKANE, Wash., May 1, 2008 -- Daybreak Oil and Gas, Inc. (OTC Bulletin Board: DBRM.OB) (“Daybreak” or the “Company”), a Washington corporation, today announced that the Company has completed the amended second closing on the sale of its Tuscaloosa Project properties located in Tensas and Franklin Parishes, Louisiana.  On April 30, 2008, Daybreak received $500,000 in exchange for the transfer of 6.25% of the Company's original ownership interest in the properties.  As reported previously, Daybreak received $2,000,000 on January 18, 2008, in exchange for 25% of its interest.  Under terms of the original Purchase and Sale Agreement, Daybreak and the purchaser contemplated two separate closings for 100% of Daybreak's interests for a total purchase price of $8,000,000.  As amended, the final closing in the amount of $5,500,000 for the balance of the Company's interest is scheduled to occur on or before May 31, 2008.  This final closing will be subject to customary allowances.

Timothy Lindsey, President and Chief Executive Officer, commenting from Houston stated: "We are very pleased to continue to move forward toward finalizing the Louisiana property transaction.  The purchaser is nearing completion of due diligence activities and record title determinations to complete the purchase process.  Since announcing the sale of these properties in January, Daybreak has primarily focused on the California East Slopes Project. Final processed 3D seismic data has recently been received by all of the partners and preliminary interpretations indicate a number of potential prospect areas.  The operator has begun the permitting process for approximately 12 possible drilling locations and is assessing rig availability.  I am excited that the East Slopes program is progressing as we now have the final seismic information and have begun to move from the prospect interpretation stage to the pre-drill stage.  Depending on the timing of permit approvals, partner concurrence, and rig availability, it appears that initial drilling could begin as early as July.  Permit restrictions in some areas dictate later drilling operations on prospects in the affected areas.  More details will be released following partner meetings scheduled to occur in May.  The final closings on the Tuscaloosa property sale affords Daybreak the opportunity to capitalize on the current California project as well as the ability to selectively consider other projects which may provide future growth in shareholder value.”

For more information about Daybreak Oil and Gas Inc., please visit its website at www.daybreakoilandgas.com.

Contact:
Tim Lindsey	Telephone:	281-253-4576
	Email:	timl@daybreakoilandgas.com
James Westmoreland	Telephone:	713-829-6062
	Email:	jimw@daybreakoilandgas.com

"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.

EX-99.2

Exhibit 99.2

LASSO PARTNERS, LLC

3660 Stoneridge Rd., Suite A 101

Austin, Texas  78746

Telephone:  (512) 327-6122

Facsimile:  (512) 327-9626

April 23, 2008

Daybreak Oil and Gas, Inc.

601 West Main Avenue, Suite 1012

Spokane, Washington  99201

Attn.:  Mr. Tim Lindsey

Dear Mr. Lindsey:

When executed on behalf of Daybreak Oil and Gas, Inc. (“Daybreak”), in the space provided below, this letter shall constitute an amendment to that certain Purchase and Sale Agreement dated as of January 15, 2008 (the “Agreement”), between Daybreak and Lasso Partners, LLC (“Lasso”), for the sale of the interests of Daybreak to Lasso in the Tensas River Farms Project in Tensas and Franklin Parishes, Louisiana.  Daybreak and Lasso are sometimes collectively referred to herein as the “Parties”, and individually as a “Party”.  Capitalized terms not otherwise defined herein shall have the same meaning assigned thereto in the Agreement.

The Agreement contemplates the acquisition by Lasso of the entire interest of Daybreak Oil and Gas, Inc., in the Assets, as defined therein, in two transactions for a total unadjusted Purchase Price of Eight Million Dollars ($8,000,000.00).  The First Transaction was closed on January 18, 2008, at which Lasso delivered to Daybreak an installment of the Purchase Price equal to Two Million Dollars ($2,000,000.00), and Daybreak delivered to Lasso the First Conveyance of twenty five percent (25%) of Daybreak’s interest in the Assets.  The Second Transaction is presently scheduled to close on or before April 30, 2008.

By this letter, the Parties agree that the Second Transaction shall be closed in two stages.  There shall be an intermediate closing (the “Intermediate Closing”) on April 30, 2008, at which Lasso shall deliver to Daybreak an installment of the Purchase Price equal to Five Hundred Thousand Dollars ($500,000.00), and in which Daybreak shall deliver to Lasso a conveyance of the form attached hereto as Exhibit “A”, assigning to Lasso an undivided 8.33333% of Daybreak’s remaining interest in the Assets (i.e., 6.25% of the interest in the Assets which Daybreak held when the Agreement was signed).

All of the representations and warranties of the Parties set forth in Articles 4 and 5 of the Agreement, all of the covenants of the Parties set forth in Article 6 of the Agreement, and all of the conditions to the Second Closing which are set forth in Article 7, Sections 7.3 and 7.4 of the Agreement shall be equally applicable to the Intermediate Closing.  The Intermediate Closing shall take place at 10:00 a.m. on April 30, 2008, at the offices of Lasso, unless otherwise agreed by the Parties.

The Agreement is amended to extend the deadline for the Second Closing until May 31, 2008.  Section 2.1 of the Agreement is amended to reflect that the Second Closing Payment for the Assets conveyed pursuant to the Second Transaction shall be Five Million Five Hundred Thousand Dollars ($5,500,000.00), adjusted as provided in Section 2.3 of the Agreement.  Section 8.5 of the Agreement is amended by replacing references to April 30, 2008, with the date May 31, 2008.

Daybreak agrees that if requested by Lasso, the sum of One Hundred Thousand Dollars ($100,000.00) out of the Second Closing Payment shall be placed in escrow at the Second Closing.  The escrow shall extend for a period of sixty (60) days after the Second Closing, and is for the express purpose of satisfying any mechanics or contractor’s liens, encumbrances, outstanding taxes or other title defects against the Assets which may be discovered during the escrow period.  At the end of the escrow period, the escrow amount, less any portion thereof which may have been used to discharge any encumbrance, shall be released to Daybreak.

Section 11.4 of the Agreement is also amended to reflect the change in the address of Lasso for notice purposes as follows:

If to Purchaser: Lasso Partners, LLC

3660 Stoneridge Rd., Suite A 101

Austin, Texas  78746

Attn.:  Mr. Bill R. Orr

Telephone:  (512) 327-6122

Facsimile:  (512) 327-9626

Except as amended herein, all of the terms and provisions of the Agreement shall remain in effect as originally stated, and are ratified and confirmed by the Parties.

If the foregoing accurately sets forth your understanding of our amendments to the Agreement, please evidence your acceptance by signing in the space provided below, and returning one fully executed counterpart of this Agreement to the undersigned.

	Yours very truly,
	LASSO PARTNERS, LLC
Date	By:	/s/ BILL R. ORR
		Bill R. Orr, President
AGREED AND ACCEPTED this 30th day of April, 2008.
DAYBREAK OIL AND GAS, INC.
By: /s/ TIM R. LINDSEY
Tim R. Lindsey, President

EXHIBIT “A”

(Attached to and made a part of Letter of Amendment to Purchase and Sale Agreement between Daybreak Oil and Gas, Inc., and Lasso Partners, LLC)

INTERMEDIATE CONVEYANCE

CONVEYANCE AND BILL OF SALE

This CONVEYANCE AND BILL OF SALE (this “Conveyance”) from Daybreak Oil and Gas, Inc., whose address is 601 W. Main Avenue, Suite 1012, Spokane, Washington 99201 (“Grantor”) to Lasso Partners, LLC, whose address is 3660 Stoneridge Rd., Suite A 101, Austin, Texas  78746 (“Grantee”), is executed this 30th day of April, 2008, but effective as of 7:00 a.m., local time, where the respective Assets (as defined below) are located, on January 1, 2008 (the “Effective Time”).

ARTICLE 1. CONVEYANCE

Grantor, for good and valuable consideration, in hand paid, the receipt and sufficiency of which is hereby acknowledged, hereby grants, bargains, sells, and conveys unto Grantee, subject to the Permitted Encumbrances, eight and one-third percent (8.33333%) of all present right, title and interest of Grantor in and to the following  (collectively, the “Assets”), which with respect to the Leases, Wells and Units described below shall not be less than the working interests and net revenue interests shown on Exhibits “A,” “A-1” and “A-2” attached hereto:

(a)The oil and gas leases, oil, gas and mineral leases, subleases and other leaseholds, royalties, overriding royalties, net profits interests, mineral fee interests, carried interests, and other properties and interests described on Exhibit “A”, together with any other leases or interests within or pertaining to lands within the Area of Mutual Interest described in Section 1.2(d) hereof (collectively, the “Leases”), and any and all oil, gas, water, CO2 or injection wells thereon, including the interests in the wells shown on Exhibit “A-1” attached hereto (the “Wells”);

(b)All pooled, communitized or unitized acreage which includes all or a part of any Lease or includes any Well including but not limited to those production units described on Exhibit “A-2” (the “Units”), and all tenements, hereditaments and appurtenances belonging to the Leases and Units;

(c)All gas and water pipelines and gathering systems and water disposal systems, compressors, wellhead equipment and facilities, central production facilities, saltwater disposal wells and facilities located on the Leases or used in connection with the Wells (collectively, the “Facilities” and, together with the Units, Leases and Wells, the “Properties”);

(d)All presently existing written contracts, agreements and instruments by which the Assets are bound, to the extent applicable to the Assets, including but not limited to, operating agreements, unitization, pooling and communitization agreements, declarations and orders, area of mutual interest agreements, joint venture agreements, farmin and farmout agreements, exchange agreements, transportation agreements, and agreements for the sale and purchase of Hydrocarbons and processing agreements, to the extent applicable to the Properties or the production of Hydrocarbons from the Properties (the “Contracts”);

(e)All surface fee interests, easements, permits, licenses, servitudes, rights-of-way, surface leases and other surface rights appurtenant to, and used or held for use in connection with, the Properties (“Appurtenant Rights”);

(f)All equipment, machinery, fixtures and other tangible personal property and improvements located on the Properties or used or held for use in connection with the operation of the Properties (the “Equipment”);

(g)All of the following, to the extent related to the Properties and in Seller’s possession, or used or held for use in connection with the maintenance or operation thereof and to the extent such are assignable or transferable by Seller without restriction under applicable law or any contracts, instruments or agreements (and without payment by Seller):  all technical information, including, but not limited to, all geological, geochemical and geophysical information, geographic and structural geological maps, well logs and related analyses and correlations, paleontological data, stratigraphic studies and data pertaining to permeability or porosity, seismic and gravitational data and production records, engineering and geological data, consultants' studies or reports regarding any of the foregoing and any and all interpretative analyses of the foregoing; copies of all insurance policies and bonds, all original books, records, files, documents (including accounts payable and receivable, accounting records, Leases, deeds, and Contracts); all title information (including, but not limited to, lease files, land files, well files, division order files, agreement files, gas sales, gathering and processing files, title opinions, abstracts, evidence that rentals, royalties and other payments due under the Leases and Contracts have been paid, evidence that Taxes have been paid, maps and surveys, lease records and data sheets), computer-sensible copies of all of Seller’s computer records; and all plans for exploration and development, applications, inspection reports, environmental impact statements, assessments and studies, permits, licenses, orders, consents, notices, correspondence and other statements and instruments pertaining to environmental matters and requirements that have been filed with or supplied to or by any Governmental Authority (the “Records”).

TO HAVE AND TO HOLD the undivided interest herein described in the Assets unto Grantee, its successors and assigns, forever, subject, however, to the terms and conditions of this Conveyance.

ARTICLE 2. TITLE AND LIMITED WARRANTY

Section 2.1Warranty.

(a)Grantor warrants title to its interest in the Assets, subject to the Permitted Encumbrances (as defined below), unto Grantee, its successors and assigns, against all persons claiming or to claim the same or any part thereof, by, through and under Grantor, but not otherwise.

(b)Grantor hereby assigns to Grantee all rights, claims, and causes of action on title warranties given or made by Grantor’s predecessors, to the extent Grantor may legally transfer such rights.

(c)The Assets are hereby conveyed to Grantee subject to the Leases and Contracts and to that certain Purchase and Sale Agreement dated January 15, 2008, between Grantor and Grantee as amended by Letter Agreement dated April ____, 2008, (the “Agreement”).

Section 2.2Permitted Encumbrances.  As used herein, the term "Permitted Encumbrances" means any or all of the following:

(a)Lessors’ royalties and any overriding royalties, reversionary interests and other burdens (and any liens or security interests created by law or reserved in instruments creating such interests to secure payment of same) to the extent that they do not, individually or in the aggregate, reduce Seller’s net revenue interests below that shown in Exhibits “A,” “A-1” and “A-2” or increase Seller’s working interest above that shown in Exhibits “A,” “A-1” and “A-2” without a corresponding increase in the net revenue interest;

(b)All leases, unit agreements, pooling agreements, operating agreements, production sales contracts, division orders and other contracts, agreements and instruments applicable to the Leases and appearing of record or disclosed by Seller to Purchaser in writing, to the extent that they do not, individually or in the aggregate, reduce Seller’s net revenue interests below that shown in Exhibit “A-1” or increase Seller’s working interest above that shown in Exhibit “A” and “A-2” without a corresponding increase in the net revenue interest;

(c)Third-party consent requirements, preferential rights and similar restrictions with respect to which waivers or consents have been obtained by Seller from the appropriate parties or the appropriate time period for asserting the right has expired or which need not be satisfied prior to a transfer;

(d)Liens for current Taxes or assessments not yet due;

(e)Materialmen’s, mechanic’s, repairman’s, employee’s, contractor’s, operator’s and other similar liens or charges arising in the ordinary course of business for amounts not yet delinquent;

(f)All rights to consent by, required notices to, filings with, or other actions by governmental agencies in connection with the sale or conveyance of oil and gas leases or interests therein or sale of production therefrom if the same are prudently obtained subsequent to such sale or conveyance; and

(g)Easements, rights of way, servitudes, permits, surface leases, and other rights in respect of surface operations on or over any of the Properties which do not materially interfere with the current or proposed operations on the Properties.

ARTICLE 3. MISCELLANEOUS

Section 3.1Further Assurances.  After the Effective Time, Grantor, without further consideration, will use its reasonable efforts to execute, deliver and record or cause to be executed, delivered and recorded such good and sufficient instruments of conveyance and transfer, and take such other action as may be reasonably required to effectively vest in Grantee beneficial and record title to the undivided interest herein described in the Assets covered by the Agreement and conveyed pursuant hereto and, if applicable, to put Grantee in actual possession of such Assets.

Section 3.2Successors and Assigns.  This Conveyance shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.

Section 3.3Titles and Captions.  All article or section titles or captions in this Conveyance are for con­venience only, shall not be deemed part of this Conveyance and in no way define, limit, extend, or describe the scope or intent of any provisions hereof.  Except to the extent otherwise stated in this Conveyance, references to “Articles” and “Sections” are to Articles and Sections of this Conveyance, and references to “Exhibits” are to Exhibits attached to this Conveyance, which are made parts hereof for all purposes.

EXECUTED to be effective as of the Effective Time.

WITNESS: By: ________________________________ Printed Name:  ________________________ By: ________________________________ Printed Name:  ________________________	GRANTOR: DAYBREAK OIL AND GAS, INC. By: ________________________________ Tim R. Lindsey President
WITNESS: By: ________________________________ Printed Name:  ________________________ By: ________________________________ Printed Name:  ________________________	GRANTEE: LASSO PARTNERS, LLC By: ________________________________ Bill R. Orr President

STATE OF ____________ §

      §

COUNTY OF __________  §

This instrument was acknowledged before me on the ____ day of April, 2008, by Tim R. Lindsey, President of DAYBREAK OIL AND GAS, INC., a Washington corporation, on behalf of said corporation.

Notary Public, State of ______________

My Commission expires:                                                                             

STATE OF TEXAS                                §

     §

COUNTY OF TRAVIS                           §

This instrument was acknowledged before me on the ____ day of April, 2008, by Bill R. Orr, as President of LASSO PARTNERS, LLC, a Delaware limited liability company, on behalf of said limited liability company.

Notary Public, State of Texas

My Commission expires:___________________

EXHIBIT “A”

LEASES

(Attached to and made a part of Conveyance and Bill of Sale

between Daybreak Oil and Gas, Inc. and Lasso Partners, LLC.)

Lease 1:   Oil, Gas and Mineral Lease dated February 18, 2002, from Chicago Mill and Lumber Company, as Lessor, to Clayton Williams Energy, Inc., as Lessee, recorded in Mineral Book 64, page 156, Tensas Parish, Louisiana, and recorded at Reg. No. 304999, Franklin Parish, Louisiana, covering 2,000 acres of land, more or less in Tensas and Franklin Parishes, Louisiana, all as more particularly described in said lease.

Lease 2:   Oil, Gas and Mineral Lease dated March 3, 2006, from Tensas River Farms I, LLC, Tensas River Farms II, LLC, and Tensas River Farms III, LLC, as Lessor, to Sam L. Pfiester, as Lessee, recorded in Mineral Book 65, page 797, and under Reg. 181063, Tensas Parish, Louisiana, and in Conveyance Book 370, Reg. No. 322021, Franklin Parish, Louisiana, covering 28,000 acres of land, more or less, in Tensas, Franklin and West Carroll Parishes, Louisiana, as more particularly described in said lease.

Lease 3:   Oil, Gas and Mineral Lease dated June 20, 2006, from Owen Corporation, as Lessor, to Sam L. Pfiester, as Lessee, recorded in Conveyance Book 376, Reg. No. 342535, Franklin Parish, Louisiana, covering 1,778 acres of land, more or less, in Franklin Parish, Louisiana, as more particularly described in said lease.

Lease 4:   Oil and Gas Lease dated October 23, 2006, from Anadarko E&P Company, LP, as Lessor, to Daybreak Oil and Gas, Inc., as Lessee, recorded in Conveyance Book 380, Reg. No. 326441, Franklin Parish, and in Mineral Book 67, page 299, Reg. No. 182862, Tensas Parish, Louisiana, covering 5,678.59 acres of land, more or less, in Tensas and Franklin Parishes, Louisiana, as more particularly described in said lease.

Lease 5:   State of Louisiana Oil and Gas Lease No. 19114 dated September 13, 2006, from the State Mineral Board of the State of Louisiana, acting on behalf of Tensas Basin Levee District, as Lessor, to Vision Exploration, L.L.C., as Lessee, recorded in Book 379, Reg. No. 326208, Franklin Parish, Louisiana, covering 39.96 acres of land, more or less, in the northeast-quarter of the northwest-quarter of Section 15, T12N, R9E, Franklin Parish, Louisiana, consisting of all of Tract 38577, Franklin Parish, Louisiana, all as more particularly described in said lease.

Lease 6:   State of Louisiana Oil and Gas Lease No. 19126 dated October 11, 2006, from the State Mineral Board of the State of Louisiana, as Lessor, to Vision Exploration, L.L.C., as Lessee, recorded in Conveyance Book 67, page 378, Reg. No. 182892, Tensas Parish, Louisiana, and in Conveyance Book 380, Reg. No. 326592, Franklin Parish, Louisiana, covering 141 acres of land, more or less, consisting of all of Tract 38598, in Franklin and Tensas Parishes, Louisiana, as more particularly described in said lease.

Lease 7:   State of Louisiana Oil and Gas Lease No. 19127 dated October 11, 2006, from the State Mineral Board of the State of Louisiana, as Lessor, to Vision Exploration, L.L.C., as Lessee, recorded in Conveyance Book 67, page 390, Reg. No. 182893, Tensas Parish, Louisiana, and in Conveyance Book 380, Reg. No. 326593, Franklin Parish, Louisiana, covering 187 acres of land, more or less, consisting of all of Tract 38599 in Franklin and Tensas Parishes, Louisiana, as more particularly described in said lease.

EXHIBIT “A-1”

WELLS

(Attached to and made a part of Conveyance and Bill of Sale

between Daybreak Oil and Gas, Inc. and Lasso Partners, LLC.)

Well Name	API No.	Operator	Working Interest	Net Revenue Interest
Tensas River Farms No. F-1		Daybreak Oil and Gas, Inc.	.66 BPO .36 APO	.495 BPO .270 APO
Tensas River Farms No. F-3		Daybreak Oil and Gas, Inc.	.361875 BPO .361875 APO	.269179 BPO .269179 APO
Tensas River Farms No. B-1		Daybreak Oil and Gas, Inc.	.6675 BPO .3675 APO	.500625 BPO .275625 APO
Tensas River Farms No. A-1		Daybreak Oil and Gas, Inc.	.21375 BPO .26062 APO	.160312 BPO .195468 APO
Tensas River Farms No. F-2		Daybreak Oil and Gas, Inc.	.18375 BPO .26062 APO	.137812 BPO .195468 APO

EXHIBIT “A-2”

UNITS

(Attached to and made a part of Conveyance and Bill of Sale

between Daybreak Oil and Gas, Inc. and Lasso Partners, LLC.)

Unit Name	Legal Description	Working Interest	Net Revenue Interest
Daybreak Oil & Gas, Inc. Tensas River Farm No. F-1	E/2 E/2 of Section 19 and the W/2 W/2 of Section 20-12N-10E, Tensas Parish	.66 BPO .36 APO	.495 BPO .270 APO
Daybreak Oil & Gas, Inc. Tensas River Farm No. F-3	S/2 of Section 17-12N-10E, Tensas Parish	.361875 BPO .361875 APO	.269179 BPO .269179 APO
Daybreak Oil & Gas, Inc. Tensas River Farm No. B-1	E/2 SE/4 of Section 22 and the SW/4 and W/2 of the SE/4 of Section 23-12N-9E, Franklin Parish	.6675 BPO .3675 APO	.500625 BPO .275625 APO
Daybreak Oil & Gas, Inc., Tensas River Farm No. A-1	E/2 of Section 13-12N-9E, Tensas Parish	.21375 BPO .26062 APO	.160312 BPO .195468 APO
Daybreak Oil & Gas, Inc., Tensas River Farm No. F-2	E/2 of Section 30-12N-10E, Tensas Parish	.18375 BPO .26062 APO	.137812 BPO .195468 APO