DeeThree Exploration, a Canadian junior E&P company, has reported better-than-expected results from production tests on its Lethbridge property in the Bakken region of southern Alberta.
Recently completed third and fourth wells averaged 940 barrels per day and 960 bpd of oil after respective 10-day and five-day tests.
The company said it is continuing to augment its Alberta Bakken program through modifications to the horizontal well lengths and fracturing dynamics and is pleased with the continuity of the sand being targeted.
Improvement in the flow rates to date has resulted in initial production over 30 says and 60 days exceeding type curve expectations, DeeThree said.
It said two drilling rigs are operating in the area, with two additional Alberta Bakken wells due for completion and testing by June 30.
Lethbridge lease term extended
The company disclosed it has extended its primary lease term on its Lethbridge property by two years to Nov. 30, 2015, in exchange for which it surrendered 50,000 acres while retaining 180,000 acres of what it believes is the most prospective acreage for Bakken reserves.
As part of the extension and in place of a 20-well commitment related to the April 2010 agreement, DeeThree has committed to drill 12 wells over a three-year period (five in each of 2012 and 2013 and two in 2014), of which six have been drilled so far.
It expects as many as four additional net Bakken wells will be on production by mid-year.
The company reported first-quarter production from all of its Alberta properties of 3,042 barrels of oil equivalent per day, up 327 percent from a year earlier and 27 percent from the final quarter of 2011.
It posted a net loss for the quarter of C$3.19 million, compared with a loss of C$1.99 million in the same period of 2011.
—Gary Park
