Diaz Resources Ltd. has received the drilling licenses and has commenced a development drilling program to drill up to 3 horizontal Dina heavy oil wells in the Macklin, Saskatchewan area.

The first well in the program is a key well to be drilled immediately to the north of the four currently producing Macklin oil wells, testing a section of mineral rights acquired by Diaz in late 2011. The company shot a 3D seismic program in Q4 2011 and has interpreted a geophysical extension of the productive Dina oil pool on the acquired lands. Diaz has a 45 % working interest in this project.

The Macklin development program is part of Diaz's strategic plan to expand its oil production through low risk development drilling. As a result of this program, Diaz's 2011 exit rate was 460 BOEd with 85% of its December 2011 revenue coming from its oil production. This was a significant improvement from Diaz's January 2011 revenue being comprised of 42% derived from oil production.

Tags: Diaz Resources