Daytona Energy Corporation: Pandura Prospect Spuds First Well

Progress report on the Kathleen Marie #2 well as of 6:00 a.m. August 26, 2007

Current depth:       400 feet. Well spudded 9:00 p.m. on August 25, 2007.


Operation:           Drilling 12 1/4 inch hole to 1,000 feet where 9 5/8
                     inch casing will be set.

                     The primary target Lobo 6400 sand is anticipated at
                     6,400 feet. Secondary target Lobo and Navarro sands
                     at varying depths. Proposed depth is 8,500 feet.

Pandura Prospect:    The Pandura Prospect is located in the centre of the
                     Lobo Gas Trend in Webb County, Texas, near the U.S.A.
                     / Mexican border. It lies within the Maria H. Llanos
                     gas field. The Kathleen Marie #2 well is a "step-out
                     development well" rather than an exploratory well. The
                     main target of this test is the "6400 sand", which is
                     probably stratigraphically equivalent to what is
                     usually termed the "Lobo 1 Sand". Secondary targets
                     include Lobo 3 and Lobo 6 sand packages as well as the
                     underlying Navarro Sand. Total potential resources are
                     estimated at 20 BCF of gas.

Daytona will have approximately 45% working interest in the well with its partners owning the remaining interest.

Daytona is an oil and gas exploration/development company, focused on gas exploration in Alberta, Canada and the Gulf Coast region of the United States.

ON BEHALF OF THE BOARD OF DIRECTORS OF DAYTONA ENERGY CORPORATION

Jim Breimayer, President & Chief Executive Officer

For additional information:

Additional information is available at www.DaytonaEnergy.com.

Except for historical information contained in this release, the matters discussed are forward looking statements that involve risks and uncertainties. When used in this release, words such as "anticipate", "believe", "estimate", "expect", "probable" and "intend" and similar expressions, as they relate to the Company or its management, identify forward looking statements. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions; the impact of competitive products and pricing; capacity and supply constraints or difficulties; product development; commercialization or technological difficulties; the regulatory and trade environment. The Company undertakes no obligation to revise any forward-looking statements as a result of future events or developments.

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