Having received drilling license, Diaz Resources Ltd. has begun a development drilling program in the Macklin, Saskatchewan area to drill up to three horizontal Dina heavy oil wells. The first well is the key well and will be drilled to the north of the four Macklin oil wells that are currently producing, to test a section of mineral rights that Diaz acquired at the end of last year. In the 4th quarter of 2011, Diaz shot a 3D seismic program and interpreted a geophysical extension of the productive Dina oil pool on the acquired land. The company has a 45% working interest in the project.
Diaz’s strategic plan to expand its oil production through low risk development drilling, includes the Macklin development program which has resulted in Diaz’s 2011 exit rate of 460BOEd with 85% of its revenue from December 2011 coming from its oil production. Previously in January 2011, Diaz’s revenue was 42% derived from oil production.