Doral Energy Corp. Provides New Mexico Operational Update

MIDLAND, TEXAS, Jul 30 (MARKET WIRE) --
Marketwire - Doral Energy Corp. (OTCBB: DEGY) ("Doral" or "the Company")
announced today that the Company is immediately taking steps to begin
operations to recomplete its Federal S No. 7 well in Eddy County, New
Mexico, as a Grayburg / San Andres completion. Total cost of this project
is estimated to be approximately $250,000. This decision is based on the
results of internal Doral engineering and geological evaluations of the
wellbore and formations available for recompletion. The Doral Energy -
Federal S No. 7 well was originally drilled to a total depth of 5,490' as
the Anadarko Petroleum Corp. - Mustang 28 Federal No. 1 well, a Paddock
test in October 2001. At the time of the Doral's acquisition of the well
as part of the Hanson Energy properties in August 2008, the wellbore was
suspended and available for recompletion.

The Federal S No. 7 well is located on Doral's 240-acre Federal S Lease,
approximately 0.5 mile south of Loco Hills, NM. Doral Energy has lease
rights to a depth of 4,000'. Two (2) wells on the Federal S Lease have
produced 170.0 MBO (thousand barrels oil) cumulatively from the Grayburg
formation. The Federal S No. 6 well (located 2,800' south of the Federal
S No. 7) alone has produced 143.3 MBO from the Grayburg formation. No
wells on the Doral Energy leasehold have ever been completed or tested in
the San Andres formation, which is productive on offset leases.

Doral Energy plans to first test the San Andres formation prior to
completing the well in the Grayburg and San Andres formations. If
successful, the Company believes the well may be able to produce in the
range of 35-50 BOPD (barrels oil per day) and 25-35 MCFD (thousand cubic
feet of gas per day), increasing Doral Energy's total daily production
from the Hanson Energy properties by approximately 30%. Results are
expected in approximately 3 weeks and updated information will be
provided at that time.

Regarding the importance of this recompletion, H. Patrick Seale, Doral's
President and Chief Operating Officer, stated, "Recompletion of the
Federal S No. 7 well will not only provide Doral with an increase in
daily production, but also convert approximately 43 MBOE (thousand
barrels of oil equivalent) of net Proved Developed Non-Producing Reserves
to the Proved Developed Producing category, based on internal estimates.
Additionally, it will provide demonstrated validity of the 11 undeveloped
Grayburg-San Andres drilling locations on this leasehold tract, plus
another 5 undeveloped locations on our 120-acre Federal X Lease directly
north of the Federal S. Together these 16 undeveloped locations will
develop approximately 686 MBOE of net reserves at a PV-10% value of
approximately $9.2 million to Doral based on in-house engineering, which
will be subject to third-party review."

In other field operations, Doral plans to install six (6) replacement
pumping units to restore wells to production, and begin a program to
mechanically repair another 10 wells currently off production, at an
estimated total cost of $110,000. The Company estimates these efforts
will restore approximately 40 BOPD of production from its operations in
Eddy County.

About Doral Energy Corp.

Doral Energy Corp. (OTCBB: DEGY) is an oil and gas exploitation and
production company headquartered in Midland, Texas. Doral Energy Corp.'s
strategy is to grow a portfolio of under-developed production and
exploitation assets with the potential for generating near-term increases
in existing production through operational improvements, and longer-term
development of proved undeveloped reserves by infill drilling. Doral
focuses on identifying acquisitions that generate immediate cash flow
from production, but which also have strong proved developed
non-producing and proved undeveloped reserves that can be tapped for
significant growth. The prolific Permian Basin of Texas and New Mexico is
a geographic region of particular interest for the Company's future
acquisition activity. Doral's first producing assets, the Hanson
Properties in Eddy County, New Mexico, located in the northwestern
Permian Basin of New Mexico, are currently producing 155 BOEPD and have
an estimated 6.1 million BOE of total proved reserves based on in-house
engineering evaluations.

Further Information

Shareholders and investors are encouraged to visit Doral Energy's website
at www.DoralEnergy.com for more information.

On behalf of DORAL ENERGY CORP.

Everett Willard ("Will") Gray, II, Chief Executive Officer

Legal Notice Regarding Forward-Looking Statements

Statements in this news release that are not historical facts are
forward-looking statements that are subject to risks and uncertainties.
Forward-looking statements are based on current facts and analyses and
other information that are based on forecasts of future results,
estimates of amounts not yet determined, and assumptions of management.
Forward looking statements are generally, but not always, identified by
the words "expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "aims", "potential", "goal", "objective",
"prospective", and similar expressions or that events or conditions
"will", "would", "may", "can", "could" or "should" occur. Information
concerning oil or natural gas reserve estimates may also be deemed to be
forward looking statements, as it constitutes a prediction of what might
be found to be present when and if a project is actually developed.

Actual results may differ materially from those currently anticipated due
to a number of factors beyond the reasonable control of the Company. It
is important to note that actual outcomes and the Company's actual
results could differ materially from those in such forward-looking
statements. Factors that could cause actual results to differ materially
include misinterpretation of data, inaccurate estimates of oil and
natural gas reserves, the uncertainty of the requirements demanded by
environmental agencies, the Company's ability to raise financing for
operations, breach by parties with whom the Company has contracted,
inability to maintain qualified employees or consultants because of
compensation or other issues, competition for equipment, inability to
obtain drilling permits, potential delays or obstacles in drilling
operations and interpreting data, the likelihood that no commercial
quantities of oil or gas are found or recoverable, and our ability to
participate in the exploration of, and successful completion of
development programs on all aforementioned prospects and leases.
Additional information on risks for the Company can be found in the
Company's filings with the US Securities and Exchange Commission.

Contacts:
Doral Energy Corp.
Everett Willard ("Will") Gray, II
Chief Executive Officer
(432) 789-1180
Website: www.DoralEnergy.com

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