DeeThree Exploration Ltd.
TSX : DTX

DeeThree Exploration Ltd.

September 28, 2011 09:00 ET

DeeThree Exploration Ltd. Announces Increased Production Rates and Expands 2011 Capital Program

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2011) -

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

DeeThree Exploration Ltd. ("DeeThree" or the "Company") (TSX:DTX) is pleased to announce current corporate production rate of approximately 2,850 boe/d with the increase in volumes attributable to the production obtained from five gross (4.8 net) wells out of the 11 gross (10.2 net) wells drilled and completed year to date.

OPERATIONAL HIGHLIGHTS:

  • Test rates for the first two Brazeau Belly River wells were 275 boe/day (85% oil & NGLs) and 100 boe/day (60% oil & NGLs) both at 89.3% net working interest.
  • The 30 day average initial production rate on the Company's first 100% working interest Bakken well is 175 boe/d (80% oil & NGLs with no associated water).
  • The fourth 100% working interest Bakken well is currently producing 173 boe/day (73% oil & NGLs with no associated water). The Company reduced drilling and completion costs by over 40% on this well.
  • The 30 day average initial production rate on the Company's first horizontal Sunburst well is 160 boe/day (69% oil & NGLs) at 100% working interest.

The Company is in various stages of testing or evaluating four of the other wells drilled year to date, one gross (1.0 net) Montney and three gross (2.4 net) Alberta Bakken wells. The Company abandoned one shallow gas well drilled in the Lethbridge area during the current quarter and is likely to abandon its first Montney well drilled in the Peace River Arch area due to higher than anticipated water production.

Due to the successful drilling results achieved year to date, the Company has increased its 2011 capital expenditure budget by $15 million. These additional funds will be allocated to the Company's Belly River oil play in Brazeau and Sunburst oil play in Lethbridge. The increase in capital expenditures will be funded through the Company's current working capital, fourth quarter cash flow and its unutilized credit facility.

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: 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 continually add to reserves through 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; the ability of the DeeThree to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of DeeThree to replace and expand oil and natural gas reserves through acquisition, development or exploration; the timing and costs of pipeline, storage and facility construction and expansion 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, production 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 news release 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.

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. Boe 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.

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