CALGARY, ALBERTA--(Marketwired - May 13, 2015) - DEETHREE EXPLORATION LTD. ("DeeThree" or the "Company") (TSX:DTX)(OTCQX:DTHRF) is pleased to release an operational update and its financial and operational results for the quarter ended March 31, 2015.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

Financial and operational highlights for the interim period ended March 31, 2015 with comparative data for 2014 are set out below and should be read in conjunction with the financial statements and related management's discussion and analysis available for review at www.deethree.ca and www.sedar.com.

Three Months Ended March 31,
		2015		2014		Change
(000s, except per share amounts)		($)		($)		(%)
Financial
Oil and natural gas revenues		46,077		65,643		(30	)
Funds from operations (1)		27,623		35,536		(22	)
	Per share - basic	0.31		0.43		(28	)
	Per share - diluted	0.30		0.42		(29	)
Cash flow from operating activities		17,607		23,607		(25	)
Net income		1,761		8,682		(80	)
	Per share - basic	0.02		0.11		(82	)
	Per share - diluted	0.02		0.10		(80	)
Capital expenditures (2)		37,060		72,312		(49	)
Working capital deficit (3)		180,784		155,517		16
Shareholders' equity		466,447		321,640		45
(000s)		(#)		(#)		(%)
Share Data
At period-end		88,974		82,065		8
Weighted average - basic		88,974		81,932		9
Weighted average - diluted		90,687		84,741		7
						(%)
Operating(4)
Production
	Natural gas (mcf/d)	15,103		12,381		22
	Crude oil (bbls/d)	9,188		6,743		36
	NGLs (bbls/d)	591		565		5
	Total (boe/d)	12,296		9,372		31
Average wellhead prices
	Natural gas ($/mcf)	2.84		6.00		(53	)
	Crude oil and NGLs ($/bbl)	47.96		89.60		(46	)
	Combined average ($/boe)	41.63		77.83		(47	)
Netbacks
	Operating netback ($/boe)	22.00		47.21		(53	)
	Funds flow netback ($/boe)	24.92		42.05		(41	)
Gross (net) wells drilled
	Gas (#)	-- (--	)	1 (1.0	)	-- (--	)
	Oil (#)	6 (6.0	)	11 (10.97	)	-45 (-45	)
	Standing (#)	-- (--	)	3 (3.0	)	-- (--	)
	Dry and abandoned (#)	-- (--	)	2 (2.0	)	-- (--	)
	Total (#)	6 (6.0	)	17 (16.97	)	-65 (-65	)
Average working interest (%)		100		100		--

(1)	Funds from operations, funds from operations per share, operating netbacks and funds flow net back are not recognized measures under International Financial Reporting Standards (IFRS). Refer to the commentary below under "Reader Advisory - Non-GAAP Measurements" for further discussion.
(2)	Total capital expenditures, including acquisitions and excluding non-cash transactions. Refer to commentary in the Management's Discussion and Analysis under "Capital Expenditures and Acquisitions" for further information.
(3)	Working capital deficit, which is calculated as current liabilities (excluding derivative financial instruments) and bank debt less current assets (excluding derivative financial instruments), is not a recognized measure under IFRS. Please refer to the commentary in this news release under "Reader Advisory - Non-GAAP Measurements" for further discussion.
(4)	For a description of the boe conversion ratio, refer to the commentary below under "Reader Advisory - BOE Presentation".

• Achieved record low operating costs of $7.37/boe during the quarter, a decrease of 28% from $10.18/boe in the same period of last year and a 1% decrease from the $7.45 achieved in the fourth quarter of 2014.
• Maintained quarter over quarter oil production volumes.
• Five Bakken gas injectors are now on-stream with almost all Bakken solution gas being re-injected into the Company's Alberta Bakken property through the gas re-injection EOR scheme.
• Production on wells recently drilled the Company's Alberta Bakken property within the area of the EOR scheme outperforming type curves and continue to flow while choked back.
• Wells drilled on the Company's Brazeau Belly River property during the first quarter of 2015 are outperforming 2014 results.
• Invested $1 million in two oil hauling trucks and trailer units in Brazeau to reduce future transportation costs.
• Purchased an additional 32,697 acres (32,697 net acres) exploratory land in the Ferguson area of southern Alberta for $2 million.
• Reduced drilling activity continues to positively impact corporate decline rates.
• Executed an additional 1,000 bbl/d hedge for the period May - December, 2015 at US $62.25/bbl. This hedge will be assigned to Boulder Energy Ltd. upon the completion of the Reorganization outlined in the "Outlook" section below.
• Executed an additional 500 bbl/d hedge for calendar 2016 (250 bbl/d at US WTI $62.75 and 250 bbl/d at US WTI $63.60). This hedge will remain with the Company upon the completion of the Reorganization.

OPERATIONAL UPDATE

DeeThree continued its operational momentum with a successful and capital efficient first quarter drilling program. The Company was able to maintain quarter over quarter oil production volumes while only drilling 6.0 gross (6.0 net) wells, being a 40% reduction from the originally planned 10 gross (10.0 net) well program announced in January, 2015. Additionally, the Company opted to defer the completion on the last Brazeau Belly River oil well drilled during the first quarter of 2015. The Company expects to complete this well in the coming weeks as weather permits, which is anticipated to provide a strong start to the second half of 2015.

Drilling activity was defined by commodity pricing through the first quarter and into the second quarter of 2015 thereby reducing corporate declines toward targeted rates of 30% on the Brazeau property and 22% on the Bakken property while preserving financial capacity. Drilling activity on both the Brazeau Belly River play and the Alberta Bakken play is set to resume in the latter half of the second quarter of 2015.

OUTLOOK

On April 7, 2015, the Company announced its intention to reorganize DeeThree (the "Reorganization") to create two, focused and independent, publicly traded energy companies - one, a sustainable growth-focused light-oil company centered around DeeThree's Belly River development in the Pembina-Brazeau area of Alberta, to be named Boulder Energy Ltd. ("Boulder"); and the other a sustainable dividend-and-growth focused oil company centered around DeeThree's Alberta Bakken enhanced oil recovery ("EOR") project in southern Alberta, to be the Company, renamed as Granite Oil Corp. ("Granite"). Under the proposed Reorganization, shareholders of DeeThree will receive 0.5 shares of Boulder, and 0.3333 shares of Granite for each share of DeeThree held.

The proposed Reorganization will be implemented through a court-approved Plan of Arrangement under the Business Corporations Act (Alberta) and will require approval by a minimum of 66 2/3% of the votes cast by DeeThree shareholders, voting in person or by proxy, at the annual general and special meeting of shareholders to be held in Calgary, Alberta on May 14, 2015. The Company anticipates that its shareholders will vote in favour of the proposed Reorganization and that the proposed reorganization will be completed on May 15, 2015.

Granite and Boulder will have the attributes set out in the following upon completion of the proposed Reorganization.

	Granite	Boulder
Reserves - January 1, 2015 (1)
Proven Developed Producing (MMboe)	5.3	10.7
Total Proved (MMboe)	10.4	24.9
Total Proven + Probable (MMboe)	17	34.7
Current horizontal drilling inventory	162	400+
Capital Structure
Opening debt ('000)	$45,000	$128,000
Credit Facility ('000)	$115,000	$175,000
Shares O/S ('000) (2)	30,232	45,348
Dividend	$0.03 per month	nil
Guidance
2H 2015 Capital Expenditures ('000)	$20,000	$45,000
2H 2015 Production (boe/d)	4,000	8,500
2H 2015 Cash Flow ('000) (3)	$28,000	$33,000
Exit 2015 Production (boe/d)	4,100	9,000
December 31, 2014 Tax Pools ('000)	$195,000	$295,000

(1)	Based on an evaluation by Sproule Associates Limited.
(2)	Assuming the cashless exercise of "in the money" vested options at current fair market price of $6.50.
(3)	Assuming WTI US$50.00. USD/CAD$1.25, Boulder: Edmonton Par Oil differentials US $7.00/B, Royalty 22.5%, Opex & Transport costs $11.50/BOE, Granite: Oil differentials US $14.00/B, Royalty 29%, Opex & Transport costs $9.70/BOE.

The Board of Directors of DeeThree is confident that the Reorganization of DeeThree into Boulder and Granite is the best course to develop and exploit DeeThree's Brazeau Belly River and Alberta Bakken assets.

Additional information regarding the proposed Reorganization, Boulder and Granite is included in the Company information circular dated effective April 9, 2015, a copy of which is available for review at www.deethree.ca and www.sedar.com.

Reader Advisory

Forward-Looking Statements. Certain statements contained in this press release may constitute forward-looking statements. These statements relate to future events or 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: pertaining to the following: the anticipated benefits of the Reorganization to DeeThree and its shareholders; the timing and anticipated receipt of required regulatory, court, and shareholder approvals for the Reorganization; the ability of DeeThree to satisfy the other conditions to, and to complete, the Reorganization; the closing of the Reorganization, the availability and size of credit facilities for Boulder and Granite, projections of market prices and costs, supply and demand for oil and natural gas, the quantity of reserves, the effectiveness of the EOR Project, oil and natural gas production levels, capital expenditure programs, treatment under governmental regulatory and taxation regimes, expectations regarding DeeThree's ability to raise capital and to continually add to reserves through acquisitions and development, and projections of market prices and costs.

In respect of the forward-looking statements and information concerning the anticipated completion of the proposed Reorganization, the anticipated timing for completion of the Reorganization and the completion of the related credit facilities, DeeThree has provided them in reliance on certain assumptions that it believe are reasonable at this time, including assumptions as to the time required to prepare and mail shareholder meeting materials, including the required management information circular; the ability of the parties to receive, in a timely manner, the necessary regulatory, court, shareholder and other third party approvals; and the ability of the parties to satisfy, in a timely manner, the other conditions to the closing of the Reorganization. These dates may change for a number of reasons, including unforeseen delays in preparing meeting material; inability to secure necessary shareholder, regulatory, court or other third party approvals in the time assumed or the need for additional time to satisfy the other conditions to the completion of the Reorganization. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times.

With respect to forward-looking statements contained in this press release related to DeeThree's business and operations, 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.

Non-GAAP Measurements. This news release contains the terms "funds from operations" and "funds from operations per share", which should not be considered an alternative to or more meaningful than cash flow from (used in) operating activities as determined in accordance with IFRS. These terms do not have any standardized meaning under IFRS. DeeThree's determination of funds from operations and funds from operations per share may not be comparable to that reported by other companies. Management uses funds from operations to analyze operating performance and leverage, and considers funds from operations to be a key measure as it demonstrates the Company's ability to generate cash necessary to fund future capital investments and to repay debt, if applicable. Funds from operations is calculated using cash flow from operating activities as presented in the statement of cash flows, before changes in non-cash working capital. DeeThree presents funds from operations per share whereby per share amounts are calculated using weighted-average shares outstanding, consistent with the calculation of earnings per share.

The Company considers corporate netbacks to be a key measure as they demonstrate DeeThree's profitability relative to current commodity prices. Corporate netbacks are comprised of operating and funds flow netbacks. Operating netback is calculated as the average sales price of the Company's commodities, less royalties, operating costs and transportation expenses. Funds flow netback starts with the operating netback and further deducts general and administrative costs, finance expense and unrealized gains on financial instruments, and then adds any finance income and realized gains on financial instruments, if applicable. No IFRS measure is reasonably comparable to netbacks. See "Netbacks (per unit)" in the Company's management's discussion and analysis for the year ended December 31, 2014 filed on www.sedar.com for the netback calculations.

Working capital deficit, which represent current assets less current liabilities, excluding current derivative financial instruments, is used to assess efficiency, liquidity and the Company's general financial strength. No IFRS measure is reasonably comparable to working capital deficit.

Test Rates. Test rates are not necessarily indicative of long-term performance or of ultimate recovery. Neither a pressure transient analysis nor a well-test interpretation has been carried out and the data should be considered to be preliminary until such analysis or interpretation has been done.

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.