CALGARY, ALBERTA--(Marketwire - Aug. 22, 2012) - Donnycreek Energy Inc. ("Donnycreek" or the "Company") (TSX VENTURE:DCK) reports that drilling commenced today on the Hz 14-30 -63-5 W6M well, the Company's second well on its Deep Basin lands at Kakwa, Alberta where the Company has a 50% working interest in 16 contiguous sections of Montney P&NG rights. The well is targeting the Montney Formation and is located approximately two miles from the Company's initial Montney well, which tested at greater than 2,500 BOE/d as more particularly described in the May 24, 2012 press release of the Company.
The new well is programmed for a total drilled length of 4,684 metres, including a horizontal leg of 1,200 metres. Donnycreek has a 50% working interest in the well. It is anticipated that the well will reach total depth by October 2012, with well completion (stimulation and testing) to be completed by November 2012. Additionally, the Company confirms that the pipeline construction to tie-in the Company's initial well in the Kakwa area continues, with anticipated construction completion by late September 2012.
Donnycreek is a Calgary based oil and natural gas production company focused on horizontal, multi-stage frac development in the Deep Basin area of west central Alberta. The Company holds working interests in 22 gross sections (14 net sections) prospective for Montney, Bluesky, Wilrich and Falher liquid rich resource development.
Further information relating to Donnycreek is also available on its website at www.donnycreekenergy.com.
ON BEHALF OF THE BOARD OF DONNYCREEK ENERGY INC.
Malcolm F.W. Todd, Chief Executive Officer
This press 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 forgoing, this press release includes statements concerning the timing to drill and complete its Montney well in the Kakwa area of Alberta and the timing of completion of the pipeline in the Kakwa area of Alberta and the prospective zones of liquid rich resource 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 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. In particular, in addition to other factors and assumptions which may be identified herein, no assurances can be given respecting: whether the Company's exploration and development activities respecting the Kakwa prospect 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 at Kakwa or; that drilling operations in Kakwa will be successful such that further development activities in this area 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 accuracy of the estimates of Donnycreek's reserve volumes; 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 completion of the pipeline in the Kakwa area; 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.
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. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in Donnycreek's management's discussion and analysis and other documents available at www.sedar.com. The reader is cautioned not to place undue reliance on this forward-looking statement. The forward-looking statements contained in this press release are made as of the date hereof and Donnycreek undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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. References to oil in this discussion include crude oil and natural gas liquids ("NGLs"). NGLs include condensate, propane, butane and ethane. References to gas in this discussion include natural gas.
President and Chief Executive Officer
(604) 684-4265 (FAX)