CALGARY, ALBERTA–(Marketwire – Mar 14, 2013) – 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 Medium Oil||Natural Gas||Natural Gas Liquids||Total Oil Equivalent|
|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)|
|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:
|Natural Gas||Light Crude Oil||Pentanes Plus|
|Henry Hub||AECO Gas Price||WTI||Edmonton||Edmonton||Inflation Rates||Exchange Rate|
|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
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.
Donnybrook Energy Inc.
President and Chief Executive Officer