CALGARY, ALBERTA–(Marketwired – Aug. 20, 2014) – Donnycreek Energy Inc. (“Donnycreek” or the “Company“) (TSX VENTURE:DCK) reports that all three 50% working interest wells 2-18-63-5 W6M, 8-20-63-5 W6M and 9-20-63-5 W6M (collectively “New Wells“) from the Company’s first three-well pad (“7-19 Pad“) have been successfully completed and flow tested.
Each of the New Wells from the 7-19 Pad were drilled with lateral lengths that extend approximately 1,900 metres which are all longer than wells previously drilled on the Company’s Kakwa acreage. The New Wells have been flowed for an extended clean up period to recover the completion fluid used in the hydraulic fracture stimulation operation and to measure the initial gas and lease condensate rates.
The New Wells are currently being equipped for production start up in September 2014, however, the Company has been advised that the mid-stream gas plant operator has scheduled a 16 day plant turn-around in mid September that is anticipated to cause all Company Kakwa production to be shut in for the duration of the turn-around. Therefore the New Wells may not be fully producing until October 2014. Donnycreek will be releasing 30 day IPs for the New Wells in due course.
The Company continues to utilize a second drilling rig to drill additional Montney horizontal wells on its Kakwa acreage. One rig is currently drilling the second of two horizontal Montney wells from a surface location at 1-25-63-5 W6M. The second rig is drilling a horizontal Montney well at 1-14-63-6 W6M.
Donnycreek has been advised by the operator that it is currently scoping and designing an expansion of the 16-7 Facility (50% working interest). The expansion will essentially double throughput capacity of the 16-7 Facility to 30mmcf/d natural gas and associated liquids, with a targeted start up by Spring 2015.
Donnycreek is a Calgary based public oil and gas company which holds approximately 439 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 exploration and 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.
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.
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Donnycreek Energy Inc.
Chief Operating Officer