DeeThree Exploration Announces Significant Brazeau Well

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DeeThree Exploration Ltd. ("DeeThree" or the "Company") (TSX:DTX.TO - News) announces the results of its fourth horizontal Belly River well in its Brazeau property.

The DeeThree operated (89% working interest) well was drilled to a planned total depth with a horizontal lateral in the target zone of approximately 1100 m. The horizontal lateral was successfully fracture stimulated, placing 320 tonnes of sand over 16 stages using energized water based system. After stimulation the well continued to flow for approximately 5 days up the 4 1/2" frac string with final stabilizing rates of approximately 600 bbls/d of 44 degrees API reservoir oil and 250 mscf/d of natural gas.

Final water cuts during the test were approximately 20% and decreasing as load water from the fracture stimulation was recovered. A production string has been installed and the well is currently shut-in to conduct pressure work. The well is expected to be returned to permanent production shortly at rates similar to the test rates, with oil being processed and natural gas conserved at DeeThree's nearby pipeline connected central battery.

DeeThree is very pleased with the results from its Brazeau Belly River development program, more than doubling the production potential from the field with the four wells it has drilled to date. DeeThree has continued to improve its drilling results through increased geotechnical knowledge and operational efficiencies. As a result of its success in the area DeeThree will increase the pace of the development of the property by bringing in a second rig by the end of January 2012.

The Company anticipates that it will release its 2012 capital expenditure and production guidance in the next few weeks.

Reader Advisory

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: DeeThree's future projects, oil and natural gas production levels, and capital expenditure programs.

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.

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.

This new release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

We seek Safe Harbor.

Contacts

Martin Cheyne
DeeThree Exploration Ltd.
President and Chief Executive Officer
(403) 263-9130