CALGARY, ALBERTA–(Marketwired – July 24, 2013) – Donnycreek Energy Inc. (“Donnycreek” or the “Company“) (TSX VENTURE:DCK) reports that the Kakwa 14-2-63-6 W6M Upper Montney horizontal well (the “14-2 Well“), previously reported as drilled in early 2013, has been successfully completed and flow tested to determine its natural gas and natural gas liquids production potential. The Upper Montney had not previously been tested by Donnycreek, however, other operators have demonstrated repeated success in the Upper Montney within the Kakwa/Resthaven trend. The 14-2 Well has been flow- tested by the operator for a total of 191 hours with tubing in the hole during the final 98 hours. During the first 24 hours with the tubing in the hole, the 14-2 Well averaged gross production rates consisting of 444 bbl/d condensate and 3.71 mmcf/d natural gas (105 bbl/d condensate and 882 mcf/d natural gas net to Donnycreek) against a flowing pressure above 4,500 kPa. During the final 74 hours with tubing in the hole, the operator varied flowing pressures between 800 kPa and up to 6,800 kPa to test the 14-2 Well under various flowing conditions. The 14-2 Well averaged gross production rates consisting of 327 bbl/d condensate and 2.8 mmcf/d natural gas (77 bbl/d condensate and 670 mcf/d natural gas net to Donnycreek) during the final 98 hours of testing. In the final hour of testing, the water cut from the 14-2 Well was 75% with an average of 80% water cut over the 98 hour testing interval. Approximately 2,300 m3 of frac water was pumped during the completion operation, with a total recovery of 1,900 m3 of water to date, including both frac water flow back and natural formation water. Upon completion of the flow test on July 23, 2013, the 14-2 Well was shut-in with bottom hole pressure recorders installed.
The Company has a 23.75% non-operated working interest in the 14-2 Well which was drilled to complete its commitment to earn 2.25 gross sections of Montney petroleum and natural gas rights adjacent to its Kakwa land base and is the fourth successful Montney well the Company has participated in for a success rate of 100%. The operator of the 14-2 well is planning to install production equipment and tie in the well and is expecting to have the well on production before year end.
The Company advises that production test results are not necessarily indicative of the long term performance or of the ultimate recovery from the 14-2 Well.
The Company is currently participating in the drilling of its fifth Kakwa Montney well (50% working interest) from a surface location at 12-24-63-6 W6M which is expected to be finished drilling by the end of August 2013.
Donnycreek is a Calgary based public oil and gas company which holds 393 gross (277 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 development in its 3 core areas: Kakwa, Wapiti and Chicken, 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 installation of production equipment, tie-in and the timing of production from the 14-2 Well, the timing of the drilling of the fifth Kakwa Montney horizontal well and the primary prospective zones for resource 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. In particular, in addition to other factors and assumptions which may be identified herein, no assurances can be given respecting: 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’s efforts to raise additional capital will be successful; 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 accuracy of the estimates of Donnycreek’s reserve volumes; 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.
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: 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, royalty rates or other regulatory matters; 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, assumptions and other factors may be found in the Company’s Revised Annual Information Form and Management’s Discussion and Analysis prepared for the year ended July 31, 2012. 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.
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.
President and Chief Executive Officer
(604) 684-4265 (FAX)
Donnycreek Energy Inc.
700, 717 Seventh Avenue Southwest
Calgary, Alberta, T2P 0Z3, Canada
(403) 265-3506 (FAX)