Donnybrook Announces Reserves
15 March 2013 - 11:17AM
Marketwired Canada
Donnybrook Energy Inc. ("Donnybrook" or the "Company") (TSX VENTURE:DEI) reports
the results of its December 31, 2012 Reserves Assessment and Evaluation of
certain of its Alberta oil and gas properties, as evaluated by GLJ Petroleum
Consultants ("GLJ") in accordance with National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities ("NI 51-101").
A summary of the Company's reserves volumes according to reserve category as at
December 31, 2012 is as provided in the following table. Unless otherwise
stated, the reserves information included in this release is stated on a
"company interest" basis, which represents Donnybrook's working interest
(operated and non-operated) share of remaining reserves before deduction of
royalties and including any royalty interests. Numbers presented in table may
not add exactly due to rounding.
Light and Natural Gas Total Oil
Medium Oil Natural Gas Liquids Equivalent
Reserves Category (Mbbl) (MMcf) (Mbbl) (Mbbl)
----------------------------------------------------------------------------
Proved
Producing 8 1,057 19 203
Non-Producing 0 0 0 0
Undeveloped 208 9,412 89 1,866
Total Proved 216 10,470 109 2,069
Probable 434 21,457 280 4,290
Total Proved plus Probable 650 31,926 389 6,359
A summary of the Company's estimated future net revenues associated with
Donnybrook's reserves as at December 31, 2012 based on the GLJ December 31, 2012
price forecast is provided in the following table. It should not be assumed that
the net present values estimated by GLJ represent the fair market value of the
reserves. Numbers presented in table may not add exactly due to rounding.
Before Income Taxes Discounted at (%/year)
0% 5% 10% 15% 20%
Reserves Category (M$) (M$) (M$) (M$) (M$)
----------------------------------------------------------------------------
Proved
Producing 3,383 2,885 2,526 2,256 2,047
Non-Producing 0 0 0 0 0
Undeveloped 31,679 20,943 14,559 10,476 7,718
Total Proved 35,062 23,828 17,085 12,732 9,765
Probable 79,856 48,990 33,021 23,521 17,319
Total Proved plus Probable 114,918 72,818 50,106 36,253 27,085
Relevant portions of the GLJ December 31, 2012 price forecast used in the
Company's evaluation are as follows:
Pentanes
Natural Gas Light Crude Oil Plus
--------------------- --------------- --------
AECO Gas
Henry Hub Price WTI Edmonton Edmonton Inflation Exchange
($U.S./ ($CDN/ ($US/ ($CDN/ ($CDN/ Rates Rate
Year MMBtu) MMBtu) bbl) bbl) bbl) (%/year) ($US/$CDN)
-------- --------------------- --------------- -----------------------------
Forecast
--------
2013 3.75 3.38 90.00 85.00 96.63 2.0 1.00
2014 4.17 3.83 92.50 91.50 97.91 2.0 1.00
2015 4.57 4.28 95.00 94.00 97.76 2.0 1.00
2016 4.95 4.72 97.50 96.50 100.36 2.0 1.00
2017 5.08 4.95 97.50 96.50 100.36 2.0 1.00
2018 5.25 5.22 97.50 96.50 100.36 2.0 1.00
2019 5.25 5.32 98.54 97.54 101.44 2.0 1.00
2020 5.25 5.43 100.51 99.51 103.49 2.0 1.00
2021 5.25 5.54 102.52 101.52 105.58 2.0 1.00
2022 5.25 5.64 104.57 103.57 107.71 2.0 1.00
Further information relating to Donnybrook is also available on its website
at www.donnybrookenergy.ca.
ON BEHALF OF THE BOARD OF DONNYBROOK ENERGY INC.
Malcolm F. W. Todd, 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 Company's future net revenues. 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 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. This news release shall
not constitute an offer to sell or the solicitation of any offer to buy
securities in any jurisdiction.
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. 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.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Donnybrook Energy Inc.
Malcolm Todd
President and Chief Executive Officer
(604) 684-2356
(604) 684-4265 (FAX)
www.donnybrookenergy.ca
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