CALGARY, ALBERTA–(Marketwired – Feb. 28, 2014) – Donnycreek Energy Inc. (“Donnycreek” or the “Company“) (TSX VENTURE:DCK) provides an operations update for its activities in the Wapiti and Kakwa areas.
Wapiti Completion Operations
Donnycreek is currently conducting completion operations on its horizontal middle Montney exploration well at 1-26-64-8 W6M (the “1-26 Well“) and such operations are anticipated to be completed within the next 10 to 12 days. The Company’s working interest in the 1-26 Well is 75%.
Donnycreek holds a 75% operated working interest in 328 gross (246 net) sections of Montney P&NG rights at Wapiti.
Kakwa Area Operations
Donnycreek is currently nearing total depth of the Company’s eighth horizontal Montney well at 02/14 – 30 – 63 – 5 W6M (“02/14-30 Well“) (50% WI) targeting the upper Montney. The Company anticipates that completion operations on the 02/14-30 Well will be finalized before break-up. Upon rig release from the 02/14-30 Well, the Company anticipates spudding the first of three horizontal Montney wells from a centrally located pad at 7-19-63-5 W6M during March 2014.
Donnycreek’s horizontal middle Montney well at 5-23-63-6 W6M (50% WI) started production in early January 2014 and averaged 2.0 mmcf/d (gross) natural gas production during its first 30 days of production, with an average field condensate production estimate of 350 bbl/d (gross) (683 boe/d gross). Donnycreek’s horizontal middle Montney well at 16-25-63-6 W6M (50% WI) was brought on production in early February 2014 and has averaged 2.3 mmcf/d (gross) natural gas production during its first 26 days of production, with an average field condensate production estimate of 430 bbl/d (gross) (813 boe/d gross). Donnycreek’s horizontal middle Montney well at 16-17-63-5 W5M (50% WI) commenced production in mid-February 2014. IP30 rates will be reported in due course.
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 liquid rich natural gas resource development 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.
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 timing of the completion operations for the 1-26 Well, the timing of the completion operations for the 02/14-30 Well, the spudding of a well in March 2014, the drilling of three horizontal Montney wells from a centrally located pad 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: 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 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 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; 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, 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 Annual Information Form for the year ended July 31, 2013 and the Company’s Management’s Discussion and Analysis prepared for the year ended July 31, 2013. 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.
In this news release the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (6 mcf) of natural gas for one barrel (bbl) of oil based on an energy equivalency conversion method. Boes may be misleading particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable to 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.
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