DeeThree Exploration Ltd. Announces Best Bakken Test Rate to Date and First Quarter 2013 Financial and Operating Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 05/14/13 -- DEETHREE EXPLORATION LTD. ("DeeThree" or the "Company") (TSX: DTX) (OTCQX: DTHRF) is pleased to release an operational update and its financial and operational results for the quarter ended March 31, 2013.
OPERATIONAL UPDATE
Throughout the first quarter of 2013, the Company invested $41.6 million principally directed at its winter drilling program. Drilling activity included the rig release of 6.0 gross (5.9 net) wells on the Brazeau Belly River property, one 100% working interest well on the Ferguson Alberta Bakken property and 1.0 gross (0.29 net) non-operated well in the Peace River Arch area of northern Alberta.
The Company focused primarily on the Brazeau Belly River property throughout the first quarter of 2013 taking advantage of winter drilling conditions and access, available capacity in the Company's facilities and favorable oil price differentials. The highlight for the quarter was the drilling of a Brazeau Belly River horizontal well that flowed at a final rate of 1,580 bbl/d of crude oil at the conclusion of a four day test (refer to the April 8, 2013 news release for additional information). This well is currently being tied-in and is expected to be on production by the end of May, 2013. The results in the area are continually improving and the Company plans to commence its summer drilling program in July 2013.
DeeThree has been very active on the Ferguson Alberta Bakken property since quarter end and currently has two rigs drilling on the property. Subsequent to March 31, 2013, the Company has drilled, completed and tested 2.0 (2.0 net) Bakken wells highlighted by a significant step out well that flow tested at the highest rate experienced to date from wells drilled on the property. After fracture stimulation, the well continued to flow for five days up the 4 1/2" frac string at an average rate of 1,560 bbls/d of 29 degrees API reservoir oil with a final rate of approximately 1,360 bbls/d of oil (on a 3/4" choke at a wellhead pressure of 150 psi). Final water cuts at the end of the test were approximately 4%. The well was drilled to a planned total depth with a horizontal lateral of approximately 3,200 metres. The horizontal lateral was successfully fracture stimulated placing 400 tonnes of sand over 22 stages using an energized water based system. The well was also significant in that it extended the edge of the Company's existing Bakken pool by another two miles.
Outlook
On April 24, 2013 the Company announced an increase to its 2013 guidance due to first quarter successes combined with better than expected, and generally improving drilling results. The Company has increased its 2013 exit rate to be in the range of 9,600 - 10,000 boe/d (81% crude oil and NGLs) and its 2013 average production to be in the range of 7,600 - 8,000 boe/d (76% crude oil and NGLs). The Company continues to protect its future cash flow through the use of financial hedges and year to date has hedged an additional 1,000 bbls/d of crude oil at a fixed price of WTI-NYMEX $97.43 CAD for 500 bbl/d (May, 2013 - December, 2013) and WTI-NYMEX $95.03 CAD for 500 bbl/d (June, 2013 - December, 2013). The Company also locked in the crude oil differential on 500 bbls/d for May 2013 at $2.65 CAD Edmonton Sweet.
With a strong balance sheet and the excellent results from its Brazeau Belly River and Ferguson Alberta Bakken properties, DeeThree is well positioned to achieve its 2013 objectives.
DeeThree's financial and operational accomplishments for the period include:
FINANCIAL AND OPERATIONAL HIGHLIGHTS
(1) Funds from operations and funds from operations per share are not recognized measures under International Financial Reporting Standards (IFRS). Refer to the commentary in the Management's Discussion and Analysis for the quarter ended March 33, 2013 under "Non-IFRS Measurements" for further discussion.
(2) Total capital expenditures, including acquisitions and excluding non-cash transactions. Refer to commentary in the Management's Discussion and Analysis for the quarter ended March 33, 2013 under "Capital Expenditures and Acquisitions" for further information.
(3) Current assets less current liabilities, excluding current derivative financial instruments.
(4) For a description of the boe conversion ratio, refer to the commentary below under "Reader Advisory - BOE Presentation".
Reader Advisory
Forward-Looking Statements. Certain statements contained in this press release may constitute forward-looking statements. These statements relate to future events or 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: projections of market prices and costs, supply and demand for oil and natural gas, 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 raise capital and to continually add to reserves through acquisitions and 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, 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 effect 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 ().
This forward-looking information represents DeeThree's views as of the date of this document 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.
Contacts:
DeeThree Exploration Ltd.
Martin Cheyne
President and Chief Executive Officer
(403) 263-9130
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Datum: 14.05.2013 - 12:00 Uhr
Sprache: Deutsch
News-ID 259647
Anzahl Zeichen: 3143
contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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