CALGARY, ALBERTA -- (Marketwire) -- 02/25/13 -- DeeThree Exploration Ltd. ("DeeThree" or the Company") (TSX: DTX) (OTCQX: DTHRF) announces its 2013 guidance and provides an operational update.
DeeThree 2013 Guidance Summary
Building on the operational and exploration success of 2012, DeeThree plans a 2013 capital program of approximately $150 million focused on increasing oil production from its Alberta Bakken property in the Lethbridge area of southern Alberta and its Belly River property in the Brazeau area of central Alberta.
DeeThree is forecasting its 2013 production to be within the range of 6,800 - 7,000 boe/d (76% crude oil and liquids, 24% natural gas) with a targeted exit of 8,500 - 9,000 boe/d (81% crude oil and liquids, 19% natural gas) as compared to the 2012 average production of approximately 4,230 boe/d (65% crude oil and liquids, 35% natural gas).
Key highlights and assumptions are:
-- 20 Alberta Bakken wells and 11 Belly River wells are planned to be drilled in 2013. The Company is planning for 5 exploration wells and 26 development wells.-- Funds flow from operations for 2013 is forecast to be approximately $100 million, based on forecast pricing of US$95.00 per barrel WTI, Cdn$3.20 per mcf AECO gas and a US$/Cdn $0.99 exchange rate. The corporate oil price differential is forecast at 20 percent of WTI, which reflects the current market environment. The Company expects to improve on these differentials by increasing crude oil deliveries on rail.-- DeeThree's balance sheet is forecast to remain strong, with projected year end net debt to fourth quarter annualized cash flow of approximately 0.8:1.0.-- The Company currently has 1,500 boe/d of crude oil hedged at an average floor of $90.00 US WTI.
In 2013 DeeThree plans to build on the success of its 2012 drilling program that resulted in the discovery of a significant oil pool on its Alberta Bakken property and the confirmation of the multi-zone potential of its Belly River light oil resource play. The Company plans to focus on achieving significant production gains while at the same time further establishing the resource potential of both of its Alberta Bakken and Belly River oil resource plays. The Company believes that its 2012 acquisitions of 51 sections (32,640 net acres) that offset its Alberta Bakken play and 34 sections (21,760 net acres) that offset its Belly River light oil play are highly prospective for further exploration and development.
Strategy and Operational Update
DeeThree is pleased to announce results following a significant light oil Belly River well completion in Brazeau. In the past weeks, DeeThree successfully drilled and completed a horizontal oil well at 5-27-47-14W5 into the previously undrilled "D sand" which is currently being tested at an approximate rate of 1,190 boe/day (45% crude oil and liquids) 44 hours after fracture stimulation. The well is currently flowing on a 3/4 inch choke at a wellhead pressure of 530 psi with the natural gas currently being recovered for sale through the Company's extensive oil and gas sales system.