DeeThree Exploration Ltd. Announces Increased Production Rates and Expands 2011 Capital Program

DeeThree Exploration Ltd. (TSX:DTX) reported present production rate of 2,850 boe/d with the increase in volumes obtained from five gross wells out of the 11 gross wells drilled to date.

The press release is quoted as saying:

Test rates for the first two Brazeau Belly River wells were 275 boe/day (85% oil & NGLs) and 100 boe/day (60% oil & NGLs) both at 89.3% net working interest. The 30 day average initial production rate on the Company’s first 100% working interest Bakken well is 175 boe/d (80% oil & NGLs with no associated water). The fourth 100% working interest Bakken well is currently producing 173 boe/day (73% oil & NGLs with no associated water). The Company reduced drilling and completion costs by over 40% on this well. The 30 day average initial production rate on the Company’s first horizontal Sunburst well is 160 boe/day (69% oil & NGLs) at 100% working interest.

The Company is in various stages of testing or evaluating four of the other wells drilled year to date, one gross (1.0 net) Montney and three gross (2.4 net) Alberta Bakken wells. The Company abandoned one shallow gas well drilled in the Lethbridge area during the current quarter and is likely to abandon its first Montney well drilled in the Peace River Arch area due to higher than anticipated water production.

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