Doral Energy Corp. Closes Eddy County, New Mexico Acquisition

MIDLAND, TEXAS, Oct 29 (MARKET WIRE) --
Doral Energy Corp. (OTCBB: DRLY) ("Doral" or "the Company"), announced
today that its subsidiary, Doral West Corp. ("Doral West") has closed an
acquisition ("the Acquisition") with Blugrass Energy, Inc. ("Blugrass")
and acquired a 40.0% working interest ("WI") in all leases owned by
Blugrass in and around the Cave Pool Unit located in Eddy County, New
Mexico (the "Cave Pool Unit properties"), effective October 12, 2009.
Blugrass Energy and Doral West now own 60% and 40% working interests,
respectively, in the approximately 2,800 acres of the Cave Pool Unit
properties, located approximately 5 miles northwest of Loco Hills, NM.
Doral Energy Corp. will be the Operator of the Cave Pool Unit properties.
As consideration for this transaction, Doral has agreed to be responsible
for acquiring lease title opinions for the leases, having an initial
independent third-party reserve report prepared for the Acquisition
properties, and share proprietary geological and engineering data and
information with Blugrass to enhance the redevelopment of the Cave Pool
Unit properties. With this Acquisition, Doral Energy Corp. now owns a
leasehold position of approximately 10,600 gross acres (8,920 net acres)
in Eddy County, New Mexico.

The Cave Pool Unit properties are adjacent to 3 leases owned and operated
by Doral which produce from 6 wells in the Grayburg and San Andres
formations and contain 9 proved undeveloped ("PUD") drilling locations in
the Square Lake Field. The Cave Pool Unit properties currently produce
approximately 10 BOEPD (barrels of oil equivalent per day) from a total
of 39 wells which were drilled on 40-acre well spacing in the Grayburg
formation of the Grayburg Jackson Pool. Currently 10 of these wells have
been identified for mechanical repair jobs and will be reworked by Doral
Energy in the near future, adding to the daily production from the
properties. A redevelopment of the Cave Pool Unit as a 20-acre 5-spot
Grayburg waterflood project could potentially add approximately 100
development drilling locations and potential gross reserves in excess of
3.0 million barrels of oil equivalent.

H. Patrick Seale, President and Chief Operating Officer of Doral, states,
"Doral Energy is very pleased to successfully close this Acquisition
quickly with our new partner, Blugrass Energy. These properties fit well
within our existing Eddy County properties and will allow Doral to
operate the Cave Pool Unit wells very economically and efficiently along
with our existing 186 wells in the Artesia-Vacuum Trend. The exploitation
and redevelopment of the Cave Pool Unit properties should be being very
beneficial to both Doral Energy and Blugrass Energy."

About Doral Energy Corp.

Doral Energy Corp. (OTCBB: DRLY) 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
the geographic region of focus 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 135 BOEPD.

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

Forward Looking Statements

This news release contains forward-looking statements that are not
historical facts and 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. In
particular, there is no assurance that Doral will be able to re-finance
its current credit facility or acquire any future properties.

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.
Brad Holmes
Office : (713) 654-4009 or Cell: (713) 304-6962
b_holmes@att.net

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