CALGARY, ALBERTA–(Marketwired – Nov. 13, 2014) – Donnycreek Energy Inc. (“Donnycreek” or the “Company“) (TSX VENTURE:DCK) reports that the three wells, at 102/02-18-63-5 W6M (“2-18“), 100/08-20-63-5 W6M (“8-20“) and 100/09-20-63-5 W6M (“9-20“) (collectively, the “New Wells“), drilled from the Company’s first three-well pad at Kakwa, have been on production since early October 2014. Donnycreek holds a 50% working interest in the New Wells.
The New Wells are flowing with Initial 30 day Production (“IP30“) gross production rates as follows:
|Gross Natural Gas production (mcf/d)||2,893||4,076||4,047|
|Gross Condensate production (bbl/d)||585||561||736|
|Gross Production (boe/d)||1,067||1,240||1,411|
The average condensate/natural gas ratio from the New Wells is approximately 170 bbl condensate/mmcf natural gas.
Donnycreek reports that current production from the New Wells remains at or near rates similar to the IP30 averages.
Following the drilling and completion operations of the New Wells, 4 additional horizontal middle Montney wells have been drilled at 100/01-14-63-6 W6M (“1-14“), 100/01-11-63-6 W6M (“1-11“), 100/04-19-63-5 W6M (“4-19“) and 100/13- 30 -63-5 W6M (“13-30“). Completion and testing operations have concluded at 4-19 and 13-30 and completion operations are currently underway at 1-14 and the 1-11 well will be completed in Q1 calendar 2015. These wells will be equipped and tied-in and are anticipated to be on production in Q1 and/or Q2 calendar 2015.
The Company has also recently finished drilling the first of two extended reach horizontal wells from an existing pad site at 8-24-63-6 W6M (“8-24“). The 100/14-25-63-6 W6M (“14-25“) well was drilled to a total depth of approximately 6,160 metres with approximately 2,600 metres of horizontal wellbore in the middle Montney. The second horizontal middle Montney well, 100/15-25-63-6 W6M (“15-25“), drilled from the 8-24 pad site has spud and is targeted to reach a total depth of approximately 6,000 metres by mid-December 2014. These two wells are scheduled to be completed and tested in Q1 calendar 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 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, 2014. 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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Donnycreek Energy Inc.
Chief Operating Officer