CALGARY, ALBERTA–(Marketwired – Sept. 29, 2014) – Donnycreek Energy Inc. (“Donnycreek” or the “Company“) (TSX VENTURE:DCK) reports the results of its July 31, 2014 Evaluation of Oil and Gas Reserves on its Alberta oil and gas properties, as evaluated by McDaniel & Associates Consultants Ltd. (“McDaniel“) in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.
A summary of the Company’s reserves volumes according to reserve category as at July 31, 2014 is as provided in the following table. Unless otherwise stated, the reserves information included in this release is stated on a “working interest” basis, which represents Donnycreek’s working interest (operated and non-operated) share of remaining reserves before deduction of royalties or including any royalty interests received. Numbers presented in table may not add exactly due to rounding.
COMPANY SHARE OF REMAINING RESERVES (GROSS)
|Light and Medium Oil||Natural Gas||Natural Gas Liquids||Total Oil Equivalent|
|Total Proved plus Probable||2.1||51,028.7||7,659.6||16,166.5|
A summary of the Company’s estimated future net revenues associated with Donnycreek’s reserves as at July 31, 2014 based on the McDaniel July 1, 2014 price forecast is provided in the following table. It should not be assumed that the net present values estimated by McDaniel represent the fair market value of the reserves. Numbers presented in table may not add exactly due to rounding.
Before Income Taxes Discounted at (%/year)
|Total Proved plus Probable||521,363||360,821||267,811||208,739||168,517|
Relevant portions of the McDaniel July 1, 2014 price forecast used in the Company’s evaluation are as follows:
|2014 (6 mos)||4.55||4.55||100.00||102.10||112.10||2.0||0.925|
Further information relating to Donnycreek is also available on its website at www.Donnycreekenergy.com.
Certain information set forth in this news release contains forward-looking statements or information (“forward-looking statements“), including statements regarding the Company’s reserves and future net revenues. Statements relating to reserves are by their nature forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves can be profitably produced in the future. It should not be assumed that the estimated future net cash flow shown below is representative of the fair market value of the Company’s properties. All evaluations and reviews of future net revenue are stated prior to any provision for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. There is no assurance that such price and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of the reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein.
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, 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.
Certain information set out herein may be considered as “financial outlook” within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Donnycreek’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
Where amounts are expressed on a barrel of oil equivalent (“BOE“) basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at 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. References to oil in this discussion include crude oil and NGLs. NGLs include condensate, propane, butane and ethane. References to gas in this discussion include natural gas.
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Chief Operating Officer