Donnybrook Energy Inc. (TSX VENTURE:DEI) ("Donnybrook" or the
"Company") provides an operations update on the Company's
activities in the Deep Basin, Alberta.
Bigstone, Alberta
The Company is scheduled to spud its second Bigstone Montney
horizontal well in the first week of December. The Donnybrook
operated DEI Bigstone Hz 16-32-60-22 W5M well (50% working
interest) will be drilled from the same drilling pad as the
Company's Bigstone Hz 3-29-60-22 W5M discovery well (25% BPO/50%
APO working interest), which tested in the last 24 hours of a 4 day
production test at a rate of approximately 4.3 million cubic feet
per day (mmcf/day) of natural gas and 295 barrels per day
(bbls/day) of condensate from a 1,254 metre horizontal section;
1,011 barrels of oil equivalent per day (boe/day), approximately
250 boe/day net to Donnybrook. The DEI Bigstone Hz 3-29 well was
completed utilizing a synthetic oil-based multi-stage frac.
The DEI Bigstone Hz 16-32 well has a planned 2,500 metre +/-
horizontal section. A third Donnybrook operated Bigstone Montney
horizontal well (50% working interest) is scheduled to spud in Q1
2012. The Company has 7 gross sections (3.5 net sections) at
Bigstone, which would support an equivalent of 28 gross (14 net)
horizontal wells.
In addition, discussions are underway with area industry
partners to construct a gathering system during Q1 2012. It is
anticipated that all production from Donnybrook's Bigstone project
area will be on-stream during April 2012.
Simonette, Alberta
At Simonette, the operator recently completed and tested the
4-27-61-1 W6M Montney horizontal well (50% working interest)
utilizing a slick-water multi-stage frac. Based on the inflow
performance, the Simonette Hz 4-27 well, which has a 1,500 metre
horizontal section, is anticipated to initially produce 500 - 525
boe/day, approximately 250 boe/day net to Donnybrook, at a flowing
pressure of 930 kPa (135 psi) and 10,093 kPa (1,465 psi) casing
pressure. Fifty percent of the production volumes from this well
are anticipated to be 43 degrees + API oil.
It is expected that the Simonette Hz 4-27 well will be tied-in
and on-stream into an adjacent gathering system by December 1,
2011. The Simonette Hz 4-27 well has successfully delineated the
west side of the Company's acreage position at Simonette. This
further de-risking of the Company's Simonette land holdings will
enable the Company to drill a number of additional in-fill Montney
horizontal well locations. The Simonette Hz 4-27 well is located
approximately 5 kilometres west of the Simonette Hz 1-22 discovery
well put on-stream in spring 2011.
The Company has been advised by the operator that it plans to
spud the Simonette Hz 4-14 Montney well (50% working interest), the
first week of December, subject to weather conditions and rig
availability. This well will delineate the southeast portion of the
Company's contiguous 33 gross (16.5 net) section Montney block at
Simonette. Donnybrook also has a horizontal Montney in-fill well
(50% working interest) budgeted for Q1 2012, to be drilled from the
Simonette Hz 1-22 discovery well drill pad.
Resthaven, Alberta
At Resthaven, as previously reported, Donnybrook has tied-in the
DEI Resthaven Hz 13-27 Montney horizontal well (70% working
interest) into the ConocoPhillips and Celtic Exploration ancillary
gathering system. The DEI Resthaven Hz 13-27 well was completed but
not fully tested due to the on-set of spring break-up in April
2011. The DEI Resthaven Hz 13-27 well is expected to be on
production before year-end.
Corporate
The Company is funding these activities from its recently closed
$12 million bought deal financing completed through a syndicate led
by Dundee Securities Ltd. and including GMP Securities L.P. and
Fraser Mackenzie Ltd. The Company also recently completed its
spinout of Donnycreek Energy Inc. (TSX VENTURE:DCK). The spinout
has provided Donnybrook with an initial $2.2 million of cash. These
funds, together with net cash on hand, totals in excess of $16.6
million and has the Company well-positioned to carry out its Q4
2011 through Q2 2012 capital expenditure program with a projected
corporate Q2 2012 target production rate of 1,500 - 2,000
boe/day.
Donnybrook Energy Inc. holds interests in 45 gross (22.5 net)
sections of petroleum and natural gas rights in the
Bigstone-Simonette-Resthaven liquid rich natural gas resource play
in the Deep Basin area of West Central Alberta providing a
potential drilling inventory of up to an equivalent of 180 gross
(90 net) Montney horizontal drilling locations.
ON BEHALF OF THE BOARD OF DONNYBROOK ENERGY INC.
Malcolm Todd, President and Chief Executive Officer
FORWARD-LOOKING STATEMENTS
Certain information set forth in this news release contains
forward-looking statements or information ("forward-looking
statements"), including statements regarding the spud of the
Bigstone 16-32 well and horizontal length, the spud of the
Simonette 4-14 well, the timing of production from the Restahven
13-27 well, the timing of tie-in, anticipated initial production,
commodity mix and API of the Simonette 4-27 well, the timing of the
drilling of the Simonette 4-14 well, drilling plans for the
Company's Simonette, Resthaven and Bigstone acreage, potential
drilling locations, the drilling of additional wells and the
construction of a gathering system at Bigstone and projected
corporate Q2 2012 production rate. By their nature, forward-looking
statements are subject to numerous risks and uncertainties, some of
which are beyond Donnybrook's control, including the impact of
general economic conditions, industry conditions, volatility of
commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, operational risks in exploration
and development, competition from other industry participants, the
lack of availability of qualified personnel or management, stock
market volatility and the ability to access sufficient capital from
internal and external sources. Although Donnybrook believes that
the expectations in our forward-looking statements are reasonable,
our forward-looking statements have been based on factors and
assumptions concerning future events which may prove to be
inaccurate. Those factors and assumptions are based upon currently
available information. Such statements are subject to known and
unknown risks, uncertainties and other factors that could influence
actual results or events and cause actual results or events to
differ materially from those stated, anticipated or implied in the
forward looking information. As such, readers are cautioned not to
place undue reliance on the forward looking information, as no
assurance can be provided as to future results, levels of activity
or achievements. The risks, uncertainties, material assumptions and
other factors that could affect actual results are discussed in our
management's discussion and analysis, Annual Information Form and
other documents available at www.sedar.com. Furthermore, the
forward-looking statements contained in this document are made as
of the date of this document and, except as required by applicable
law, Donnybrook does not undertake any obligation to publicly
update or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise.
The forward-looking statements contained in this document are
expressly qualified by this cautionary statement.
Where amounts are expressed on a barrel of oil equivalent
("BOE") basis, natural gas volumes have been converted to oil
equivalence at six thousand cubic feet per barrel. The term BOE may
be misleading, particularly if used in isolation. A BOE conversion
ratio of six thousand cubic feet per barrel is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.
References to oil in this discussion include crude oil and natural
gas liquids ("NGLs"). NGLs include condensate, propane, butane and
ethane. References to gas in this discussion include natural
gas.
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.
Contacts: Donnybrook Energy Inc. Malcolm Todd President and
Chief Executive Officer (604) 684-2356 (604) 684-4265 (FAX)
(TSXV:DEI)
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