CALGARY, June 1 /CNW/ - Diaz Resources Ltd. (TSX:DZR) today reported that
it plans to accelerate its development activities on a section of land
strategically located in the Lloydminster area of central Alberta.
Diaz holds a 50% working interest in the section that presently has one
horizontal well, drilled in the fall of 2008, which is currently producing 63
barrels of oil per day. The well has produced approximately 6,000 barrels of
oil to date.
Diaz is the operator of the lands and had planned to drill three
additional wells on the section; however, the Company has received a notice
from its partner of their intention to file a holding application which would
allow for up to 64 wells to be drilled on a 640 acre holding.
The partner is the operator the section immediately to the north of the
Diaz operated lands and has drilled 31 horizontal wells to date on that
section, in which Diaz has an overriding royalty interest. According to public
records the production rates from those wells reached a maximum of
approximately 1,320 barrels per day, with associated gas, and are currently
producing at a rate of over 1,180 barrels per day.
A map of the Diaz - Lloydminster Land Holdings can be found at the
following internet address:
As a result of higher oil prices, encouraging production rates on Diaz's
oil well, and the Company's interpretation, based on geological and 3D
seismic, that the entire section could be hydrocarbon bearing, the Company
plans to focus its 2009 efforts on rapidly developing this oil pool.
In order to finance this development the Company is investigating a
number of financing alternatives. Diaz will also benefit, in the short term,
from the new Alberta royalty incentive program which will defray some of the
drilling costs for additional wells and provides a lower royalty rate for the
first year of production for the new wells.
Diaz is an oil and gas exploration and production company based in
Calgary, Alberta. Diaz's current focus is on oil development in Alberta and
ADVISORY: Certain information regarding the Company in this News Release
including management's assessment of future plans and operations, the use of
proceeds from the offering and the anticipated closing date of the offering,
may constitute forward-looking statements under applicable securities laws and
necessarily involve risks including, without limitation, risks associated with
oil and gas exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, capital expenditure costs, including drilling, completion and
facilities costs, unexpected decline rates in wells, wells not performing as
expected, incorrect assessment of the value of acquisitions, failure to
realize the anticipated benefits of acquisitions, delays resulting from or
inability to obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources. As a consequence,
actual results may differ materially from those anticipated in the
forward-looking statements. Readers are cautioned that the foregoing list of
factors is not exhausted. Additional information on these and other factors
that could effect the Company'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) and at the Company's
website (www.diazresources.com). Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news release
and the Company does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be required by
applicable securities laws.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
For further information: Robert W. Lamond, Chairman - or - Donald K.
Clark, Chief Operating Officer, DIAZ RESOURCES LTD., Telephone: (403)
269-9889, Fax: (403) 269-9890, Website: www.diazresources.com, Email:
email@example.com, TSX: DZR