| August 25, 2011 |
| Donnybrook Energy Spuds Bigstone Horizontal Montney Well; Simonette Montney Location Prepares to Spud |
CALGARY, ALBERTA--(Marketwire - Aug. 25, 2011) - Malcolm Todd, Chief Executive Officer of Donnybrook Energy Inc. ("Donnybrook" or the "Company") (TSX VENTURE:DEI) reports that the Donnybrook operated Bigstone DEI Hz 3-29 horizontal well, to drill into the Montney formation with a projected horizontal length of approximately 1,400 metres, spud today.
Donnybrook is paying 25% of the DEI Hz 3-29 well costs (drill, complete, equip, and tie-in) and will retain a 25% working interest and a 10% GORR on a 75% working interest before payout, and a 50% working interest after payout in the DEI Hz 3-29 well and in the balance of the 7 section block at Bigstone, Alberta.
The DEI Hz 3-29 well is located within 8 kilometers of a recently announced 3,200 meter horizontal liquids rich natural gas Montney well that after clean-up reportedly flowed on test over the last day at an average rate of 13.1 MMCF of natural gas and 650 barrels of crude oil and NGLs per day (2,800 boe per day).
At Simonette, Alberta, Donnybrook has been advised by Cequence Energy Ltd. ("Cequence") that equipment is moving onto the 4-27 drilling location and that the 4-27 well is expected to spud on August 28, 2011. Initially, the 4-27 well will be drilled as a stratigraphic test into the Montney formation and if successful it will then be drilled horizontally for approximately 1,400 metres. Cequence, as operator, is paying 70% and Donnybrook is paying 30% of the drilling and completion costs. Thereafter the costs on the 4-27 well will be shared 50% Cequence; 50% Donnybrook.
The 4-27 well will be the first of three Montney horizontal multi-stage frac locations contemplated to be drilled prior to year-end on Donnybrook's 50% lands at Simonette.
At Resthaven, Alberta, Donnybrook and its partner, Celtic Exploration Ltd., have tied-in the DEI Hz 13-27 Montney horizontal well (DEI 70% working interest) into the Conoco Phillips ancillary gathering system and gas plant. The 13-27 well was completed but not fully tested due to the on-set of spring break-up in April 2011. It is anticipated that the 13-27 production test will resume in-line in September 2011.
Donnybrook Energy Inc. holds interests in 45 gross (22.5 net) sections of petroleum and natural gas rights in its core Simonette-Resthaven-Bigstone liquid rich natural gas resource play in the Deep Basin area of West Central Alberta.
Further information relating to the Company is also available on its website at www.donnybrookenergy.ca.
ON BEHALF OF THE BOARD OF DONNYBROOK ENERGY INC.
Malcolm 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 tie-in and resumption of the production test of the 13-27 well, the spud of the Simonette 4-27 well, drilling plans for the Company's Simonette acreage, potential drilling locations and the drilling of additional wells. 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 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. | |