DEEP RESOURCES LTD.

DEEP RESOURCES LTD.

March 15, 2005 17:28 ET

Deep Resources Announces Successful 2004/2005 Drilling Program and Updates Activities


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DEEP RESOURCES LTD.

TSX VENTURE SYMBOL: DEP

MARCH 15, 2005 - 17:28 ET

Deep Resources Announces Successful 2004/2005 Drilling
Program and Updates Activities

CALGARY, ALBERTA--(CCNMatthews - March 15, 2005) - Deep Resources Ltd.
(TSX VENTURE:DEP) ("Deep" or the "Company") is pleased to provide an
interim update on its operations and activities. The Company plans to
announce the financial results for the year ended December 31, 2004 and
its corporate reserves for January 1, 2005 on April 27, 2005. Deep will
also update production guidance at that time.

Operations

During the fourth quarter of 2004, the Company carried out a 100 km new
2D seismic program in the Corbett, Thunder and Newton areas of the
greater Greencourt region to evaluate new drilling opportunities and
upgrade existing inventory wells on Company lands. The extent and scope
of this seismic program was in part defined by the success of the 2004
natural gas drilling program. Also, during the fourth quarter of 2004
and early in the first quarter of 2005, the Company drilled and cased
three natural gas wells. As a result of this recent drilling success,
management estimates that there is approximately 210 boepd (net to Deep)
of gas production behind pipe and the Company is proceeding with the
tie-ins of these wells. Deep plans to manage the early stages of
production from these wells in a manner that allows management to
maximize the development opportunities in the area and to determine the
limitations on infrastructure and processing facilities in the area.

At Newton, the original discovery well continues to produce at a gross
rate of approximately 1.6 mmscfd (260 boepd). Deep holds a 66% BPO
working interest and a 54% APO working interest in the well. When the
well was originally tested, it had an absolute open flow test of over 12
mmscfd (2,000 boepd). Management continues with activities in Newton
that should lead to increases in the reserves and production base in the
area and has acquired additional 100% working interest lands offsetting
this original discovery well. Plans are in place to drill on these lands
in the second quarter of 2005. In addition to new lands acquired at land
sales, the Company is exploring opportunities with other operators in
the area for joint operations on lands held by those companies.

Deep had scheduled to drill an additional 5 wells in the greater
Greencourt region in the first quarter of 2005 and has postponed those
activities due to earlier than anticipated spring break up conditions.
These drilling operations should recommence as soon as road and weather
conditions permit.

New Activity - Expansion of Land Access

The Company is also pleased to announce that it signed a farmin
agreement in March, 2005, that includes Deep's exclusive right to
explore 99 net sections (63,360 acres) of long-tenure lands in the
general Peace River Arch region of Alberta. The Peace River Arch is
characterized by multi-zone, long life oil and natural gas reserves. The
initial commitment pursuant to the farmin agreement involves a one well
drilling commitment with a November 15, 2005 spud date.

In addition, Deep has secured a multi-section farmin in the Sunset area
of Alberta. A well should be drilled on the Sunset lands in the second
quarter of 2005.

Production Update

Over the course of 2004, the Company's production has grown from 100
boepd at January 1, 2004 to a 2004 exit production of 520 boepd (based
on estimates from field production information). Production increases
have all been the result of the drilling success in the greater
Greencourt region of Alberta. Current average daily production for the
Company is 420 boepd. The Company has had some difficulty maintaining
rates in excess of these levels due to infrastructure limitations,
facility constraints as well as water production problems with one of
its wells in the Newton area. This well is currently shut in and the
Company expects it should be back on production when lease access allows
planned remedial operations to be concluded.

Deep is a publicly traded Canadian energy company involved in the
exploration, development and production of natural gas and crude oil in
western Canada.

Certain information regarding the Company contained herein may
constitute forward-looking statements under applicable securities laws.
Such statements are subject to known or unknown risks and uncertainties
that may cause actual results to differ materially from those
anticipated or implied in the forward-looking statements.

Common Shares Outstanding: 32,491,254

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Deep Resources Ltd.
    710, 400 - 5th Avenue S.W.
    Calgary, Alberta T2P 0L6
    or
    Deep Resources Ltd.
    Eugene A. Wasylchuk
    President and Chief Executive Officer
    (403) 262-2129
    (403) 262-2190 (FAX)
    Email: eugene.wasylchuk@deepresources.com
    or
    Deep Resources Ltd.
    Warren F. E. Coles
    Chief Financial Officer
    (403) 265-2195
    (403) 262-2190 (FAX)
    Email: warren.coles@deepresources.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the information contained
    herein.