Defiant Resources Corporation

Defiant Resources Corporation

September 20, 2005 12:07 ET

Defiant Provides Operations Update

CALGARY, ALBERTA--(CCNMatthews - Sept. 20, 2005) - Defiant Resources Corporation (TSX:DFR) is pleased to provide an operational update.

Year-to-date we have drilled 17 (11.8 net) wells. Thirteen (9.0 net) wells were cased for production and four (2.8 net) were dry and abandoned. Twelve (8.5 net) of the 17 (11.8 net) wells were classified as exploratory. Our net success rate to date is 76.2%, which we consider to be very satisfactory given the high (72%) exploratory component of our program so far this year.

Defiant's production rate is expected to reach 520 boe/d during September and 650 boe/d in October. We have additional production of approximately 400 boe/d from cased wells in the Grand Prairie area; we expect to be able to bring 150 boe/d of this production on stream by year-end, following the construction of a 12 mile pipeline for the sweet gas. The remaining 250 boe/d of production requires the modification of existing facilities to process sour gas; we expect to bring this on stream in 2006.

We had originally planned to drill 22 wells in 2005, and we expect to achieve this by early November. The five wells remaining to be drilled are budgeted to add 200 boe/d by year-end to the 800 boe/d yielded from our program to date. Our exit rate target of 1,000 boe/d for our first year of operations thus appears to be achieveable.

Our exploration success to date has yielded a number of new discoveries for future development, and this has provided us with the opportunity to consider an expanded capital program in 2006. A copy of Defiant's updated presentation will be posted on our website today.

Forward Looking Statements - Certain information regarding Defiant Resources Corporation set forth in this document, including management's assessment of Defiant Resources Corporation's future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Defiant Resources Corporation's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Defiant Resources Corporation's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Defiant Resources Corporation will derive therefrom.

Contact Information

  • Defiant Resources Corporation
    David J. Evans
    Chairman of the Board & C.E.O.
    (403) 218-4101
    Defiant Resources Corporation
    Rick J. Ironside
    President & C.O.O.
    (403) 218-4104
    Defiant Resources Corporation
    Timothy V. Dunne
    V.P., Finance & C.F.O.
    (403) 218-4111
    (403) 266-5506 (FAX)