DeeThree Exploration Inc.
TSX VENTURE : DTX

DeeThree Exploration Inc.

September 22, 2009 09:16 ET

DeeThree Drills Discoveries

CALGARY, ALBERTA--(Marketwire - Sept. 22, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

DEETHREE EXPLORATION INC. ("DeeThree") (TSX VENTURE:DTX) is pleased to announce that it has recently completed the drilling of two new wells on its Lethbridge property, resulting in two new discoveries. This success is a continuation of the results previously announced in the operational update provided on August 31, 2009.

As announced on August 31, 2009, DeeThree discovered a new pool of natural gas at the southernmost end of its Lethbridge property during the drilling program completed in the second quarter of 2009. This high deliverability well (100% working interest) tested at rates of approximately 3,500 mcf/d during a two day flow test and is presently shut-in pending tie-in. This discovery is the primary reason for an 18 km pipeline extension project that is underway. In addition to this pipeline, DeeThree is continuing with preparatory work on five additional drilling prospects and various tie-in projects throughout the Lethbridge property.

The first well completed in the third quarter of 2009 (100% working interest) successfully encountered its primary objective, being an extension of a prolific natural gas pool that is currently owned 100% by DeeThree. Preliminary completion reports indicate that reservoir pressure is higher than expected which, combined with the initial test volumes of approximately 2,600 mcf/d over a 27 hour flow test, results in the potential for substantial reserves remaining. In addition to the primary objective, a new uphole zone was discovered which drillstem tested at flow rates exceeding 650 mcf/day. Two drilling locations to follow-up this discovery have already been identified on 3D seismic.

The second well completed in the third quarter of 2009 (100% working interest) was an exploratory well targeting deeper horizons. Based on shows during drilling, log analysis, and preliminary completion data, the well appears to have successfully encountered a new oil pool. This well is particularly important to DeeThree's ongoing exploration activities by proving an extension to an existing oil producing trend, situated where the current 3D seismic program is underway.

All of the above seismically-driven discoveries are part of a larger ongoing expansion project being undertaken on DeeThree's Lethbridge property.

Highlights of the results to date from DeeThree's 2009 drilling program are provided below.

- A substantial increase in the tested behind pipe gas production capability for the Lethbridge property, which is now estimated to exceed 500 boe/d representing a significant increase over current daily volumes. This will be put into production in a prudent manner dependent primarily upon natural gas pricing.

- A significant increase in proved natural gas reserves.

- Validation of the DeeThree's geophysical and geological interpretations, leading to the identification of additional drilling locations.

- Increased potential for commodity diversification.

These results have considerably enhanced the dynamics of DeeThree's Lethbridge property and consequently the Company will likely expedite exploration and development activities planned for the area.

Fieldwork has commenced on the 36 section 3D seismic program announced in DeeThree's August 31, 2009 news release. This program will provide data that is contiguous with the existing seismic data that covers two of the discoveries described in this news release and is anticipated to provide additional information that will assist with exploration in the oil fairway within the property.

Three more wells are slated to be drilled during the remainder of this year. The number of wells to be drilled may be increased should natural gas prices continue to improve.

Martin Cheyne, DeeThree's President and Chief Executive Officer, commented, "The results to date have far exceeded our initial expectations. We are very excited about the further validation of our G&G models, and our current seismic program will allow us to further exploit the potential of an important block of our significant undeveloped acreage."

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release may constitute forward-looking statements. These statements relate to future events or the DeeThree's future performance and the potential increases in DeeThree's daily production rate. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. DeeThree believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by investors. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.

In particular, this press release contains forward-looking statements pertaining to the following: the quantity of reserves, oil and natural gas production levels, capital expenditure programs, treatment under governmental regulatory and taxation regimes, expectations regarding DeeThree's ability to raise capital and to continually add to reserves through acquisitions and development and projections of market prices and costs.

With respect to forward-looking statements contained in this press release, DeeThree has made assumptions regarding, among other things: the legislative and regulatory environments of the jurisdictions where DeeThree carries on business or has operations, the impact of increasing competition, and DeeThree's ability to obtain additional financing on satisfactory terms.

DeeThree's actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors that may include, but are not limited to: volatility in the market prices for oil and natural gas; uncertainties associated with estimating reserves; geological, technical, drilling and processing problems; liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations; incorrect assessments of the value of acquisitions; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel. All three discoveries described in this news release remain subject to additional testing.

This forward-looking information represents DeeThree's views as of the date of this document and such information should not be relied upon as representing its views as of any date subsequent to the date of this document. DeeThree has attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. There can be no assurance that forward-looking information will prove to be accurate, as results and future events could differ materially from those expected or estimated in such statements. There is no guarantee made by DeeThree that the actual results achieved will be the same as those disclosed herein. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking statements included in this press release are made as of the date of this press release and DeeThree disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

BOE Presentation

References herein to "boe" mean barrels of oil equivalent derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • DeeThree Exploration Inc.
    Martin Cheyne
    President and Chief Executive Officer
    (403) 263-9130