Diaz Resources Ltd.

Diaz Resources Ltd.

January 29, 2008 13:48 ET

Diaz Announces Drilling Has Commenced on the N.W. Speaks Robertson #1 Well, Lavaca County, Texas and Updates Texas Operations

CALGARY, ALBERTA--(Marketwire - Jan. 29, 2008) - Diaz Resources Ltd. (TSX:DZR) announces that on January 29, 2008, drilling commenced on the N.W. Speaks Robertson #1 well, located in Lavaca County, Texas.

The projected total depth for the Roberson #1 well is 13,600 feet and is located 325 feet from a well which had produced from 125 feet of Wilcox gas pay.

Diaz will pay 12.125 % of the cost to drill the well and will own a 21.5935% working interest at casing point.

The Black Owl #1 well, Wharton County, Texas, Diaz working interest 24.4%, came on stream November 6, 2007, and to date has produced 110 MMcf of gas and 1930 barrels of condensate. The well is currently producing 1.4 MMcfd, at 5,225 psi flowing tubing pressure, with 23 barrels of condensate per day.

At the West Wharco Schilling Duson #1 well, Wharton County, Texas, Diaz working interest 20%, plans are under way to complete a Yegua zone which, based on the Company's log interpretation, has 18 feet of potential oil and gas pay. Completion operations are expected to be carried out in February, 2008.

At the Cheney #1 well, Colorado County, Texas, Sharon Energy Ltd., one of Diaz's partners, has been appointed operator and has put the remaining partners on notice to fracture stimulate the Wilcox #18 sand and install production facilities. Diaz has a 20% working interest in this well. The operations are anticipated to be conducted in the first quarter of 2008.

At Allen Ranch, Diaz plans to conduct operations to restore production from the Hancock #2 well. Diaz has a 20% working interest in this well. Operations are expected to be conducted in the first quarter of 2008.

Diaz is an oil and gas exploration and production company based in Calgary, Alberta. Diaz's current focus is on shallow gas developments in southern Alberta, natural gas exploration in central and southern Alberta and deep gas exploration in Texas.

ADVISORY: Certain information regarding the Company in this News Release including management's assessment of future plans and operations, the use of proceeds from the offering and the anticipated closing date of the offering, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect the Company'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) and at the Company's website (www.diazresources.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Diaz Resources Ltd.
    Robert W. Lamond
    (403) 269-9889
    (403) 269-9890 (FAX)
    Diaz Resources Ltd.
    Donald K. Clark
    Chief Operating Officer
    (403) 269-9889
    (403) 269-9890 (FAX)
    Email: info@diazresources.com
    Website: www.diazresources.com