Exploration & Production | Capital Markets | Capital Expenditure

DeeThree Exploration Plans 46 Gross Wells in Alberta for 2014

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DeeThree Exploration Ltd. has announced its 2014 guidance and provides an operational update in respect of a well recently completed on its Brazeau Belly River property.

2014 Guidance

The Company will undertake a $230 million capital expenditure program in 2014. This program is focused on the further exploration and development of the Company’s Alberta Bakken property in the Lethbridge area of Southern Alberta and its Belly River property in the Brazeau area of central Alberta by the drilling of approximately 46 gross wells. The 2014 capital program is anticipated to be fully funded through internally generated funds from operations and the Company’s existing credit facility.

The Company is forecasting its 2014 production to be within the range of 11,500 to 11,700 boe/d (81% crude oil and NGLs) with a targeted 2014 exit production rate of 13,000 – 13,500 boe/d (82% crude oil and NGLs).

Key highlights:

• Average production of 11,500 – 11,700 boe/d (81% crude oil and NGLs).
• Exit production target – 13,000 – 13,500 boe/d (82% crude oil and NGLs).
• Capital expenditures are budgeted at $230 million including the drilling of 46 gross wells on the Lethbridge and Brazeau properties.
• Funds from operations anticipated to be $170 million or $2.06 per basic share.
• Year end net debt to annualized fourth quarter funds from operations is expected to be less than one times, thereby maintaining a strong Balance Sheet.

Brazeau Belly River Well Test Results

The Company is also pleased to announce the results of a four day production test of its most recent 100% working interest horizontal Belly River oil well drilled in the Brazeau area. After fracture stimulation, this well continued to flow for 4.5 days up the 4 1/2″ frac string at an average rate of 940 bbls /d of 44° API reservoir oil and 3.3 mmscf/d of natural gas with a final rate of approximately 850 bbls/d of oil and 3.7 mmscf/d of natural gas (on a 1 1/16” choke at a wellhead pressure of 350 psi). With expected conservation of produced natural gas for sale, this final test rate equates to approximately 1,525 boe/d (70% oil and liquids). This well is an offset to an earlier Upper D discovery that tested at similar rates and helps support the Company’s initial interpretation of a much larger pool with several more potential high impact locations.