CALGARY, ALBERTA--(Marketwired - Jan. 15, 2014) - DEETHREE EXPLORATION LTD. ("DeeThree" or the "Company") (TSX:DTX)(OTCQX:DTHRF) is pleased to announce that based on field estimates it met its targeted 2013 exit production rate of 10,000 boe/d in December 2013 having attained a maximum rate of 10,200 boe/d (81% oil and NGLs and 19% natural gas). DeeThree's current production rate is approximately 9,500 boe/d (76% oil and NGLs and 24% natural gas).
The Company currently has three drilling rigs active in the Brazeau area with a fourth rig to commence drilling in the Alberta Bakken in the coming days. Current additional operations include the expansion of the enhanced recovery re-injection scheme in the Alberta Bakken including the addition of a second re-injection well soon to be operational as well as the continuation of the multi-lateral horizontal drilling initiative in Brazeau which is improving cost efficiencies in the area.
Brazeau Belly River Update
DeeThree is presently in the later stages of drilling 3 gross (3.0 net) horizontal wells on its Brazeau Belly River property. These wells are expected to be completed and placed onto production prior to the end of January. DeeThree will continue to operate three drilling rigs on its Brazeau Belly River property for the balance of the winter drilling season.
DeeThree recently successfully drilled and completed its first multi-leg horizontal well. This 100% working interest well was drilled on the DeeThree's Brazeau Belly River property and has two legs each with a horizontal length of 1,500 metres. The combined production from the horizontal legs is currently approximately 350 bbl/d of 44° API reservoir oil and 950 mscf/d of gas.
As a result of the significantly increased capital efficiency realized through the drilling of multiple horizontal legs from a single well pad, DeeThree's 2014 Brazeau Belly River drilling program will focus on well locations that provide for multiple horizontal legs. Future bilateral wells will be drilled with the use of extended reach horizontal well drilling technology with a view to realizing the capital efficiencies of wells with horizontal lengths in excess of 1.3 miles as described in DeeThree's news release of November 8, 2013.
Based on the positive results of the pilot gas re-injection enhanced recovery scheme implemented by DeeThree on its Alberta Bakken property, the Company will expand the size of the area under the program in the coming weeks with the addition of a second gas re-injection well which is anticipated to be operating by the end of January. This well was producing approximately 200 bbls/d prior to being converted into a re-injection well in December 2013. A third gas re-injection well is planned in the coming months following which substantially all gas produced by DeeThree from its Alberta Bakken property will be re-injected to enhance oil recoveries.
DeeThree will commence its 2014 Alberta Bakken drilling program in the coming days with one drilling rig. DeeThree will operate this rig on its Alberta Bakken property for the balance of the winter drilling season.
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 projects, oil and natural gas production levels, financial results 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 price of oil and natural gas, 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. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect DeeThree's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
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.
Test Rates. Test rates are not necessarily indicative of long-term performance or of ultimate recovery. Neither a pressure transient analysis nor a well-test interpretation has been carried out and the data should be considered to be preliminary until such analysis or interpretation has been done.
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.