DeeThree Exploration Ltd.
TSX : DTX
OTCQX : DTHRF

DeeThree Exploration Ltd.

February 14, 2012 07:45 ET

DeeThree Announces Significant Bakken Discovery Well

CALGARY, ALBERTA--(Marketwire - Feb. 14, 2012) -

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

DeeThree Exploration Ltd. ("DeeThree" or the "Company") (TSX:DTX) (OTCQX:DTHRF) announces the results of its fifth horizontal Bakken well on its Lethbridge property.

This Bakken well was drilled on the eastern portion of its Lethbridge property to a planned total depth with a horizontal lateral of approximately 970 meters in a significant porous Bakken target zone. The horizontal lateral was successfully fracture stimulated, placing 112 tonnes of sand over 14 stages using an energized water based system. After stimulation, the well was flowed for clean-up for four days up the 4 1/2" frac string with final stabilizing flowing rates of approximately 550 bbls/d of 30° API reservoir oil and 60 mscf/d of natural gas. Final water cuts were approximately 10% with further remaining load water from the fracture stimulation to be recovered. The well is currently shut-in in order to remove the frac string and install a smaller diameter production string. The well is expected to be placed onto production shortly after which it will undergo addition testing and evaluation procedures. The well will be tied-in to DeeThree's extensive oil and gas processing infrastructure. The well is located approximately 35 kilometers from DeeThree's original Bakken discovery well.

DeeThree is very pleased with the results of its Bakken exploration and development program on its Lethbridge property to date. DeeThree's greatly increased understanding of the Bakken play derived from the 2011 four well Bakken test program and its extensive 3D seismic has resulted in a more targeted approach to drilling on its acreage. This has resulted in DeeThree's most significant Bakken discovery well to date. Over the course of the six months preceding the drilling and completion of the this well, DeeThree strategically added to its extensive land position in the Bakken fairway through its acquisition of an additional 17 sections of crown land that are on trend with this discovery well. DeeThree will continue to delineate this exploration discovery using its in-house geotechnical knowledge with follow-up drilling locations that are currently in the licensing process. The Bakken play will continue to be a primary focus of DeeThree.

Update

The farmee under the Farmout and Joint Venture agreement described in DeeThree news release of April 18, 2011 has elected to terminate the agreement after having drilled only one well of the four well commitment. This well is currently producing. The farmee earned a 60% working interest in the well and in 6.0 sections of the farmout lands and has no right to earn additional interests in the farmout lands. A termination fee of $3 million has been paid to DeeThree. The lands subject to the agreement are located approximately 41 kilometers from the discovery well described above and targeted a different Bakken interval.

Reader Advisory

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. 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: DeeThree's future oil and natural gas production levels, future projects and capital expenditure programs.

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; uncertainties associated with DeeThree's ability to obtain additional financing on satisfactory terms; 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.

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. Accordingly, readers should not place undue reliance on forward-looking information. . Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.

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

We seek Safe Harbor.

Contact Information

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