Diaz Resources Ltd.
TSX VENTURE : DZR

Diaz Resources Ltd.

February 23, 2012 09:00 ET

Diaz Commences Macklin, Saskatchewan Development Program

CALGARY, ALBERTA--(Marketwire - Feb. 23, 2012) - Diaz Resources Ltd. (TSX VENTURE:DZR) announces today that it has received the drilling licenses and has commenced a development drilling program to drill up to 3 horizontal Dina heavy oil wells in the Macklin, Saskatchewan area.

The first well in the program is a key well to be drilled immediately to the north of the four currently producing Macklin oil wells, testing a section of mineral rights acquired by Diaz in late 2011. The company shot a 3D seismic program in Q4 2011 and has interpreted a geophysical extension of the productive Dina oil pool on the acquired lands. Diaz has a 45 % working interest in this project.

The Macklin development program is part of Diaz's strategic plan to expand its oil production through low risk development drilling. As a result of this program, Diaz's 2011 exit rate was 460 BOEd with 85% of its December 2011 revenue coming from its oil production. This was a significant improvement from Diaz's January 2011 revenue being comprised of 42% derived from oil production.

ADVISORY: Certain information in this news release, including drilling plans and projected drilling, completion and equipping costs, and production rates from the Lloydminster and Macklin fields 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, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, 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 exhaustive.

Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).

The forward looking statements contained in this press release are made as of the date hereof and Diaz undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Diaz Resources Ltd.
    Robert W. Lamond
    Chairman & CEO
    (403) 269-9889
    (403) 269-9890 (FAX)

    Diaz Resources Ltd.
    Donald K. Clark
    Vice President Operations
    (403) 269-9889
    (403) 269-9890 (FAX)