CALGARY, ALBERTA–(Marketwired – Sept. 9, 2013) – Donnycreek Energy Inc. (“Donnycreek” or the “Company“) (TSX VENTURE:DCK) reports that its fifth Kakwa Montney well has been successfully drilled to a vertical depth of approximately 3,380 metres with approximately 1,461 metres of horizontal wellbore in the middle Montney for a total measured depth (TMD) of approximately 5,017 metres. Drilled to a bottom hole location in 5-23-63-6 W6M (the “5-23 Well“) from a surface location in 5-24-63-6 W6M, the 5-23 Well will be hydraulically fracture stimulated and tested to determine its productive capability for natural gas and natural gas liquids. This operation is scheduled to begin mid-September 2013 and is expected to be completed by the end of October 2013.
Prior to drilling the 5-23 Well, an exploration well was drilled vertically at 5-24-63-6 W6M to a depth of approximately 3,800 metres to collect geological and reservoir data to evaluate the reserve potential on Company lands which currently have no reserve value assigned.
The Company is moving forward with its drilling plans and is currently mobilizing equipment to drill a middle Montney horizontal well from 1-25-63-6 W6M to 16-25-63-6 W6M with an expected spud date in mid-September 2013. Donnycreek has a 50% working interest in this well and the 5-23 Well.
Construction of a central gas gathering, compression and condensate handing facility in which the Company has a 50% working interest is underway, and is scheduled for start-up prior to year end 2013. This centralized facility will process the majority of the Company’s Kakwa Montney natural gas and condensate production, and is designed to improve well production performance and reduce operating costs.
Pipeline tie in and installation of production equipment on the previously reported upper Montney horizontal well at 14-2-63-6 W6M (the “14-2 Well“) is complete and is expected to be brought on production by the end of September 2013. The Company has a 23.75% working interest in the 14-2 Well.
At Kakwa, Donnycreek holds 19 gross (8.9 net) sections of Montney petroleum and natural gas rights.
Donnycreek is licensing its first Montney well on its Wapiti land base where it holds an operated 75% working interest in 365 gross sections of land. The application to drill an exploration well in 13-26-64-8 W6M is programed as a vertical stratigraphic Montney test and with favourable results will be kicked off horizontally with a 1,600 metre horizontal wellbore.
Donnycreek is a Calgary-based public oil and gas company which holds approximately 438 gross (313 net) sections of petroleum and natural gas rights, with an average working interest of approximately 70%, prospective primarily for Montney resource development.
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, 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 timing of fracture stimulation and testing of the 5-23 Well, the spud date of the Company’s next horizontal Montney well, the start-up of the Company’s central gas gathering, compression and condensate handing facility, the timing of production of the 14-2 Well, the drilling of the Company’s first Montney well at Wapiti and the primary prospective zone for 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. 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 or assumptions and other factors may be found under 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.
President and Chief Executive Officer
(604) 684-4265 (FAX)