Donnycreek Reports Successful Test Results in Kakwa Upper Montney Zone
07 April 2014 - 10:00PM
Marketwired Canada
Donnycreek Energy Inc. ("Donnycreek" or the "Company") (TSX VENTURE:DCK) reports
that its eighth Kakwa horizontal Montney well at 02/14-30-63-5 W6 (the "02/14-30
Well") (Donnycreek 50% working interest) drilled in the upper Montney interval
has been successfully completed and tested. The 02/14-30 Well was drilled to a
total measured depth of approximately 4,563 metres, with a horizontal leg of
approximately 1,068 metres, approximately 200-500 metres shorter than previous
Company Kakwa wells and the shortest of the Company's Kakwa horizontal Montney
wells drilled to date. The 02/14-30 Well was completed using a water-based
nitrogen foam frac and then tested for approximately 119 hours, flowing up 4.5
inch casing. During the final 24 hours of flow-back the 02/14-30 Well continued
to clean up frac fluid and produced against anticipated gathering system
pressure of approximately 1,800 kPa and averaged gross production rates of
approximately 1,076 boe/d consisting of 621 bbl/d of condensate and 2,734 mscf/d
of natural gas (310 bbl/d and 1,367 mscf/d, or 539 boe/d combined, net to
Donnycreek).
Final equipping of the 02/14-30 Well and onsite facilities work will begin
immediately to provide for tie-in of production from the 02/14-30 Well into
Company-owned infrastructure. Donnycreek anticipates that the 02/14-30 Well
should be ready for production in May 2014.
Donnycreek is encouraged by the test rates and ratio of condensate to natural
gas production from this upper Montney interval and the potential for additional
development of the upper Montney across its entire Kakwa land position.
Production test results from the upper Montney interval in the 02/14-30 Well
have been reported at this time given this is a previously untested Montney
interval on Donnycreek's 50% working interest 16.75 section Kakwa land block. As
previously reported, Donnycreek expects to release any further development
drilling production results at Kakwa based on 30 day initial production rates.
The Company advises that although the initial rates from the 02/14-30 Well are
encouraging, production test results are not necessarily indicative of long-term
performance or of ultimate recovery from the 02/14-30 Well.
Donnycreek is a Calgary based public oil and gas company which holds
approximately 438 gross (313 net) sections of petroleum and natural gas rights,
with an average working interest of approximately 70%, prospective primarily for
Montney liquid rich natural gas resource exploration and development all of
which are located in the Deep Basin area of west-central Alberta.
Further information relating to Donnycreek is also available on its website at
www.donnycreekenergy.com.
ON BEHALF OF THE BOARD OF DONNYCREEK ENERGY INC.
Malcolm F.W. Todd, President and Chief Executive Officer
ADVISORY ON FORWARD-LOOKING STATEMENTS: This news release contains certain
forward-looking information and statements ("forward-looking statements") within
the meaning of applicable securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project", "should",
"believe", "plans", "intends" and similar expressions are intended to identify
forward- looking statements. In particular, but without limiting the foregoing,
this news release contains statements concerning the equipping, tie-in and the
timing of production from the 02/14-30 Well, the development potential of the
upper Montney on the Company's Kakwa land position, the release of further
production results and the primary prospective zone for exploration and
development on the Company's lands.
Forward-looking statements are based on a number of material factors,
expectations or assumptions of Donnycreek which have been used to develop such
statements and information but which may prove to be incorrect. Although
Donnycreek believes that the expectations reflected in these forward-looking
statements are reasonable, undue reliance should not be placed on them because
Donnycreek can give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Further, events or
circumstances may cause actual results to differ materially from those predicted
as a result of numerous known and unknown risks, uncertainties, and other
factors, many of which are beyond the control of the Company, including, without
limitation: whether the Company's exploration and development activities
respecting its prospects will be successful or that material volumes of
petroleum and natural gas reserves will be encountered, or if encountered can be
produced on a commercial basis; the ultimate size and scope of any hydrocarbon
bearing formations on its lands; that drilling operations on its lands will be
successful such that further development activities in these areas are
warranted; that Donnycreek will continue to conduct its operations in a manner
consistent with past operations; results from drilling and development
activities will be consistent with past operations; the general stability of the
economic and political environment in which Donnycreek operates; drilling
results; field production rates and decline rates; the general continuance of
current industry conditions; the timing and cost of pipeline, storage and
facility construction and expansion and the ability of Donnycreek to secure
adequate product transportation; future commodity prices; currency, exchange and
interest rates; regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which Donnycreek operates; and the
ability of Donnycreek to successfully market its oil and natural gas products;
changes in commodity prices; changes in the demand for or supply of the
Company's products; unanticipated operating results or production declines;
changes in tax or environmental laws, changes in development plans of Donnycreek
or by third party operators of Donnycreek's properties, increased debt levels or
debt service requirements; inaccurate estimation of Donnycreek's oil and gas
reserve and resource volumes; limited, unfavourable or a lack of access to
capital markets; increased costs; a lack of adequate insurance coverage; the
impact of competitors; and certain other risks detailed from time-to-time in
Donnycreek's public disclosure documents.
Additional information regarding some of these risks, expectations or
assumptions and other factors may be found under in the Company's Annual
Information Form for the year ended July 31, 2013 and the Company's Management's
Discussion and Analysis prepared for the year ended July 31, 2013. The reader is
cautioned not to place undue reliance on these forward-looking statements. The
forward-looking statements contained in this news release are made as of the
date hereof and Donnycreek undertakes no obligations to update publicly or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, unless so required by applicable securities laws.
In this news release the calculation of barrels of oil equivalent (boe) is
calculated at a conversion rate of six thousand cubic feet (6 mcf) of natural
gas for one barrel (bbl) of oil based on an energy equivalency conversion
method. Boes may be misleading particularly if used in isolation. A boe
conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion
method primarily applicable to the burner tip and does not represent a value
equivalency at the wellhead. Given that the value ratio based on the current
price of crude oil as compared to natural gas is significantly different from
the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
FOR FURTHER INFORMATION PLEASE CONTACT:
Donnycreek Energy Inc.
Malcolm Todd
President and Chief Executive Officer
(403) 237-5700
(403) 265-3506 (FAX)
www.donnycreekenergy.com
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