CALGARY, ALBERTA–(Marketwired – April 24, 2013) –
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
DEETHREE EXPLORATION LTD. (“DeeThree” or the “Company“) (DTX.TO)(DTHRF) is pleased to announce that its current syndicate of lenders have committed to an increase to the Company’s credit facility to $135 million from $90 million. The increase in the credit facility is expected to be finalized in late April 2013.
As a result of better than expected, and generally improving, drilling results, the Company has increased its guidance for 2013 as follows:
|Previous Guidance||Increased Guidance|
|Wells drilled||20 Alberta Bakken wells
11 Belly River wells
|20 Alberta Bakken wells
11 Belly River wells
|Capital expenditures||$150 million||$160 million|
|Average Production||6,800 -7,000 boe/d (76% Crude oil & NGLs)||7,600 – 8,000 boe/d (76% Crude oil & NGLs)|
|Year End Exit Production||8,500 – 9,000 boe/d (81% Crude oil & NGLs)||9,600 – 10,000 boe/d (81% Crude oil & NGLs)|
|Funds flow from operations||$100 million||$120 million|
|Forecast pricing Assumptions||WTI – US$95.00/bbl
Aeco – CAD$3.20/mcf
Exchange rate – US$/CDN $0.99
Oil price differential – 20% of WTI
|WTI – US$91.00/bbl
Aeco – CAD$3.80/mcf
Exchange rate – US$/CDN $0.99
Oil price differential – 17% of WTI
|Projected year end net debt to Q4 annualized cash flow||0.8:1.0||0.7:1.0|
The Company has increased its 2013 capital expenditure budget primarily to expand facility infrastructure to accommodate future oil production increases in the Company’s two core oil fields, the Brazeau Belly River and the Ferguson Alberta Bakken. In particular, the Company has commenced the process for the construction of a new 6″ main pipeline at Brazeau to transport oil and natural gas from its farm-in lands to existing Company-owned infrastructure. This pipeline is anticipated to be completed in August 2013. At Ferguson, the Company is presently constructing a new oil battery that will have an initial capacity of 8,000 bbl/d with provisions for expansion. This battery is anticipated to be completed in July 2013.
Forward-Looking Statements. Certain statements contained in this press release may constitute forward-looking statements. These statements relate to future events or the DeeThree’s future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. DeeThree believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by investors. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.
In particular, this press release contains forward-looking statements, pertaining to the following: an increase in the amount available under DeeThree’s credit facility, oil and natural gas production levels, capital expenditure programs, projections of market prices and costs, supply and demand for oil and natural gas, the quantity of reserves, treatment under governmental regulatory and taxation regimes and expectations regarding DeeThree’s ability to raise capital and to continually add to reserves through acquisitions and development.
With respect to forward-looking statements contained in this press release, DeeThree has made assumptions regarding, among other things: the legislative and regulatory environments of the jurisdictions where DeeThree carries on business or has operations, the impact of increasing competition, and DeeThree’s ability to obtain additional financing on satisfactory terms.
DeeThree’s actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors that may include, but are not limited to: volatility in the market prices for oil and natural gas; uncertainties associated with estimating reserves; uncertainties associated with DeeThree’s ability to obtain additional financing on satisfactory terms; geological, technical, drilling and processing problems; liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations; incorrect assessments of the value of acquisitions; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect DeeThree’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
This forward-looking information represents DeeThree’s views as of the date of this document and such information should not be relied upon as representing its views as of any date subsequent to the date of this document. DeeThree has attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. There can be no assurance that forward-looking information will prove to be accurate, as results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.
BOE Presentation. References herein to “boe” mean barrels of oil equivalent derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
We seek Safe Harbor.
President and Chief Executive Officer