DeeThree Exploration Ltd. (“DeeThree” or the “Company”) (TSX:DTX) (OTCQX:DTHRF) announces the results of its fifth horizontal Bakken well on its Lethbridge property.This Bakken well was drilled on the eastern portion of its Lethbridge property to a planned total depth with a horizontal lateral of approximately 970 meters in a significant porous Bakken target zone. The horizontal lateral was successfully fracture stimulated, placing 112 tonnes of sand over 14 stages using an energized water based system. After stimulation, the well was flowed for clean-up for four days up the 4 1/2″ frac string with final stabilizing flowing rates of approximately 550 bbls/d of 30 degrees API reservoir oil and 60 mscf/d of natural gas. Final water cuts were approximately 10% with further remaining load water from the fracture stimulation to be recovered. The well is currently shut-in in order to remove the frac string and install a smaller diameter production string. The well is expected to be placed onto production shortly after which it will undergo addition testing and evaluation procedures. The well will be tied-in to DeeThree’s extensive oil and gas processing infrastructure. The well is located approximately 35 kilometers from DeeThree’s original Bakken discovery well.
DeeThree is very pleased with the results of its Bakken exploration and development program on its Lethbridge property to date. DeeThree’s greatly increased understanding of the Bakken play derived from the 2011 four well Bakken test program and its extensive 3D seismic has resulted in a more targeted approach to drilling on its acreage. This has resulted in DeeThree’s most significant Bakken discovery well to date. Over the course of the six months preceding the drilling and completion of the this well, DeeThree strategically added to its extensive land position in the Bakken fairway through its acquisition of an additional 17 sections of crown land that are on trend with this discovery well. DeeThree will continue to delineate this exploration discovery using its in-house geotechnical knowledge with follow-up drilling locations that are currently in the licensing process. The Bakken play will continue to be a primary focus of DeeThree.
The farmee under the Farmout and Joint Venture agreement described in DeeThree news release of April 18, 2011 has elected to terminate the agreement after having drilled only one well of the four well commitment. This well is currently producing. The farmee earned a 60% working interest in the well and in 6.0 sections of the farmout lands and has no right to earn additional interests in the farmout lands. A termination fee of $3 million has been paid to DeeThree. The lands subject to the agreement are located approximately 41 kilometers from the discovery well described above and targeted a different Bakken interval.
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