DeeThree Exploration Ltd. Provides Earnings Guidance for the Fiscal Year 2014; Announces Test Results at Brazeau Belly River Well
Dec 18 13
DeeThree Exploration Ltd. provided earnings guidance for the fiscal year 2014. For the year, the company will undertake a $230 million capital expenditure program. The company is forecasting its 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). 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. Capital expenditures are budgeted at $230 million including the drilling of 46 gross wells on the Lethbridge and Brazeau properties.
The company also announced 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 44deg 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.
DeeThree Exploration Ltd. Announces Operating and Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013; Provides Production and Capital Expenditure Guidance for the Full Year of 2013
Nov 8 13
DeeThree Exploration Ltd. announced operating and earnings results for the third quarter and nine months ended September 30, 2013. For the quarter, the company reported oil and natural gas revenues of $55,754,000 compared to $24,020,000 a year ago. Funds from operations were $29,410,000 or $0.37 per diluted share compared to $14,265,000 or $0.20 per diluted share a year ago. Cash flow from operating activities was $32,073,000 compared to $12,555,000 a year ago. Net income was $8,570,000 or $0.11 per basic and diluted share compared to $1,294,000 or $0.02 per basic and diluted share a year ago. Capital expenditures were $74,969,000 compared to $33,205,000 a year ago.
For the nine months, the company reported oil and natural gas revenues of $126,126,000 compared to $56,734,000 a year ago. Funds from operations were $68,635,000 or $0.88 per diluted share compared to $29,858,000 or $0.42 per diluted share a year ago. Cash flow from operating activities was $71,949,000 compared to $31,315,000 a year ago. Net income was $14,743,000 or $0.19 per diluted share compared to $3,698,000 or $0.05 per diluted share a year ago. Capital expenditures were $155,813,000 compared to $99,619,000 a year ago. Exited the quarter with total net debt of $131.3 million.
For the quarter, the company reported total operating production of 7,573 boe/d compared to 4,692 boe/d a year ago.
For the nine months, the company reported total operating production of 6,698 boe/d compared to 3,849 boe/d a year ago.
As a result of the company's excellent drilling results year to date, the Board of Directors has approved a $40 million increase to the company's 2013 capital expenditure program to a total of $200 million. The capital expenditure budget has been increased primarily to expand the company's 2013 drilling program by an additional 4.0 (4.0 net) wells for a total of 35.0 gross (34.7 net) horizontal wells to be drilled in 2013. With these additional wells anticipated to be drilled and tied-in prior to year end, the company will have an additional 8 horizontal wells coming on-stream prior to December 31, 2013. The increase also accounts for the opportunistic acquisition of a total of over 40,000 acres of Alberta Bakken ($3 million) and Brazeau Belly River ($8 million) lands. With this expanded drilling program, the Company has increased its target 2013 exit production rate from 9,600 - 10,000 boe/d (81% crude oil and NGL's) to 10,000 - 10,500 boe/d (82% crude oil and NGL's).
Deethree Exploration Ltd. Announces Brazeau Belly River Resource Evaluation
Aug 14 13
DeeThree Exploration Ltd. announced the results of a resource evaluation on and limited to DeeThree's Belly River assets located in the Brazeau area of Alberta as of July 31, 2013. Highlights of the evaluation include: Discovered oil in place of 880 MMbbl with a best estimate of the recoverable contingent oil resource of 88 MMbbl, with 67 MMbbl remaining after deducting the reserves produced and booked to July 31, 2013; Undiscovered oil in place of 468 MMbbl with a best estimate of recoverable prospective oil resource of 47 MMbbl; Best estimate of recoverable contingent (discovered) petroleum and natural gas resources of 135 MMboe comprised of 88 MMbbl of oil, 195 Bcf of natural gas and 14 MMbbl of NGLs, with 107 MMboe remaining after deducting the reserves produced and booked to July 31, 2013; Best estimate of recoverable prospective (undiscovered) petroleum and natural gas resources of 78 Mboe comprised of 47 MMbbl of oil, 131 Bcf of natural gas and 9 MMbbl of NGLs. The resource evaluation was undertaken in respect of all lands held by DeeThree in the Brazeau, Alberta area as of July 31, 2013 and including the 34 sections in which DeeThree may earn an
interest in pursuant to its farm-in agreement with a senior oil and gas producer.