DeeThree Exploration Ltd.
TSX : DTX

DeeThree Exploration Ltd.

April 18, 2011 09:10 ET

DeeThree Announces Farmout and Joint Venture Agreement With Major Oil and Gas Company

CALGARY, ALBERTA--(Marketwire - April 18, 2011) -

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

DEETHREE EXPLORATION LTD. ("DeeThree") (TSX:DTX) is pleased to announce it has entered into a Farmout and Joint Venture agreement with a major oil and gas company ("farmee") in the Lethbridge area.

The terms of the deal involve a four well commitment on a total of 15,815 acres of the Company's undeveloped lands strategically located in the Lethbridge area. The farmee is committed to drill four horizontal earning wells by December 31, 2011 responsible for 100% of the costs through completion to earn 60% working interest in the farmout lands with no payout terms.

DeeThree is pleased with the terms of the deal which it believes will expedite development of DeeThree's large undeveloped land base in the Lethbridge area, provide additional technical information regarding the emerging Alberta Bakken play and increase the availability of services in the Lethbridge area.

In addition to the lands subject to the Farmout and Joint Venture Agreement, the Company continues to maintain a large block of undeveloped land prospective for the Bakken in the Lethbridge area. The previously announced Lethbridge drilling program will remain unchanged, with seven horizontal Bakken wells to be drilled in 2011. To date, DeeThree has drilled two horizontal Bakken locations with plans to complete a 15 stage frac on the first well as early as next week depending on the weather conditions in the area.

Reader Advisory

Forward-Looking Statements. Certain statements contained herein constitute forward-looking statements, including statements concerning the drilling and completion of four wells by the Farmee on DeeThree's Lethbridge property by December 31, 2011. DeeThree believes 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 herein should not be unduly relied upon. The drilling and completion of these wells could be delayed if necessary approvals cannot be obtained within anticipated timelines. 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.

We seek Safe Harbor.

Contact Information

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