CALGARY, ALBERTA–(Marketwired – Dec. 20, 2013) – Donnycreek Energy Inc. (“Donnycreek” or the “Company“) (TSX-V: DCK) reports that it has filed its condensed interim financial statements and related Management’s Discussion and Analysis (“MD&A”) for the three months ended October 31, 2013 with 2012 comparatives on SEDAR. Selected financial and operational information is outlined below and should be read in conjunction with Donnycreek’s condensed interim financial statements for the three months ended October 31, 2013 and its audited financial statements and related MD&A for the year ended July 31, 2013 which are available for review at www.sedar.com and on our website at www.donnycreekenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
| Three Months Ended | ||||
| 31-Oct-13 | 31-Jul-13 | 31-Oct-12 | ||
| Petroleum and natural gas sales | $ 2,447,769 | $ 2,899,982 | $ 77,841 | |
| Funds flow from operations(1) | $ 1,545,501 | $ 1,726,323 | $ (48,969) | |
| Basic ($/share) | $ 0.03 | $ 0.04 | $ (0.01) | |
| Diluted ($/share) | $ 0.03 | $ 0.04 | $ (0.01) | |
| Net income (loss) | $ 396,224 | $ 551,137 | $ (1,920) | |
| Basic ($/share) | $ 0.01 | $ 0.01 | $ (0.01) | |
| Diluted ($/share) | $ 0.01 | $ 0.01 | $ (0.01) | |
| Capital expenditures | $ 7,290,529 | $ 4,937,074 | $ 13,156,289 | |
| Working capital | $ 23,606,388 | $ 27,781,356 | $ 24,522,259 | |
| Total assets | $ 67,176,274 | $ 65,907,337 | $ 46,559,397 | |
| Operating | ||||
| Average daily production (sales) | ||||
| Crude oil (bbls/d)(2) | 221 | 250 | 0.1 | |
| Natural gas (mcf/d) | 1,432 | 1,471 | 204 | |
| NGLs (bbls/d) | 12 | 2 | 2 | |
| Total (boe/d) | 472 | 498 | 36 | |
| Average realized price | ||||
| Crude oil ($/bbls)(2) | $ 95.67 | $ 99.89 | $ 81.55 | |
| Natural gas ($/mcf) | $ 2.90 | $ 3.76 | $ 2.41 | |
| NGLs ($/bbls) | $ 95.01 | $ 76.22 | $ 91.94 | |
| Netback ($/boe) | ||||
| Petroleum and natural gas sales | $ 56.37 | $ 63.33 | $ 23.50 | |
| Royalties | $ (2.98) | $ (2.42) | $ (3.11) | |
| Operating expenses (incl. transportation) | $ (12.59) | $ (17.48) | $ (8.57) | |
| Operating netbacks(3) | $ 40.80 | $ 43.43 | $ 11.81 | |
| Share Information | ||||
| Common shares outstanding | 51,310,350 | 51,310,530 | 40,785,037 | |
| Weighted average common shares outstanding | 51,310,350 | 42,961,889 | 24,167,780 | |
| Notes: | |
| (1) | Funds flow from operations are petroleum and natural gas revenue and interest income less producing and operating expenses, royalties, exploration and evaluation expenditures and general and administrative expenses. |
| (2) | References to crude oil include condensate. |
| (3) | Operating netbacks are determined by deducting royalties, production expenses and transportation and selling expenses from petroleum and natural gas revenue. |
Fiscal 2014 Capital Budget
Donnycreek’s updated capital budget for fiscal 2014 allocates approximately $49.2 million to its Kakwa and Wapiti properties which are expected to be funded from cash on hand and funds flow from operations. In addition to the operations outlined below at Kakwa and Wapiti, the updated fiscal 2014 budget includes the drilling of 5 additional Montney wells at Kakwa to bring the total number of wells drilled to 12 gross (5.5 net) on our 18.75 gross (8.75 net) section Kakwa land block by July 31, 2014.
Operations Update – Kakwa
Donnycreek’s seventh horizontal Montney well spud on November 10, 2013 targeting the middle Montney formation from a surface location at 16-8-63-5 W6M with a bottom hole location at 16-17-63-5 W6M (the “16-17 Well”). The 16-17 Well (50% working interest) has been drilled to a total measured depth of 5,191 metres from the same drilling pad as our discovery well at 13-17-63-5 W6M and completion operations are expected to commence in January 2014.
Completion operations