CALGARY, ALBERTA--(Marketwire - Feb. 29, 2012) - Donnybrook Energy Inc. ("Donnybrook" or the "Company") (TSX VENTURE:DEI) reports that it has entered into an agreement to pool certain of its Bigstone Montney P&NG rights held by the Company and its partners in section 28-60-22W5M with the Montney P&NG rights held jointly by Trilogy Energy and TAQA North in the adjacent section 33-60-22W5M for the purpose of drilling an extended reach horizontal well on the pooled lands. Donnybrook will hold an undivided 25% interest in the pooled lands and will participate as to a 25% working interest in the development of the lands, which can accommodate the drilling up to four extended reach horizontal wells.
The Donnybrook operated location is scheduled to spud on March 2, 2012 from a surface location at 4-28-60-22 W5M and with approximately 2,700 metres of lateral length planned to a bottom hole location at 13-33-60-22 W5M.
At Bigstone, Alberta Donnybrook has 8 gross (3.5 net) sections of P&NG rights located approximately 35 kilometres (22 miles) east of the eastern edge of the Company's Simonette acreage block providing an inventory of 14 (6 net) extended reach development drilling locations.
At Simonette, the Company's third Simonette area horizontal well 1-11-61-27 W5M (50% working interest) which was drilled, completed and tested in the southeast portion of the Company's 33 section (16.5 net) contiguous land block at Simonette is anticipated to be tied-in and put on production by mid-March. The Cequence Energy operated step-out well is expected to commence production at rates of approximately 8 mmcf per day of natural gas and free condensate estimated at approximately 40 barrels per day (1,370 boe per day gross; 685 boe per day net). It is expected that additional natural gas liquids of approximately 30 to 40 barrels of NGLs per mmcf will be recovered at the processing facility.
Donnybrook holds interests in 46 gross (22.5 net) sections of petroleum and natural gas rights in the Bigstone-Simonette-Resthaven liquid rich natural gas resource play in the Deep Basin area of west central Alberta providing a development drilling inventory of up to an equivalent of 70 gross (34 net) Montney horizontal development drilling locations.
Further information relating to Donnybrook is also available on its website at www.donnybrookenergy.ca.
ON BEHALF OF THE BOARD OF DONNYBROOK ENERGY INC.
Malcolm F. W. Todd, Chief Executive Officer
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including statements regarding the estimated free condensate, the additional potential natural gas liquids and natural gas initial production rates from the 1-11 Simonette well, the timing for commencement of production of the 1-11 Simonette well, the timing of the spud of Donnybrook's third operated horizontal Montney well at Bigstone and the number of potential extended reach horizontal wells on the pooled lands. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Donnybrook's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Donnybrook believes that the expectations in the forward-looking statements are reasonable, the forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in Donnybrook's Annual Information Form, management's discussion and analysis and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Donnybrook does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.