CALGARY, ALBERTA--(Marketwire - April 10, 2012) - Donnybrook Energy Inc. ("Donnybrook" or the "Company") (TSX VENTURE:DEI) provides an operations update on the Company's activities in the Deep Basin, Alberta.
- The DEI Bigstone Hz 13-33-60-22 W5M well (DEI: 25% working interest) has been drilled to total measured depth of 5,336 metres with a 2,590 metre horizontal length in the Montney;
- Surface production facilities located at 03-29-60-22 W5M and the 1.6 mile of 8 inch pipeline to the Delphi Energy Corp. ("Delphi") operated gas gathering system tie-in point has been completed;
- Production from the DEI Bigstone Hz 14-29 and Hz 15-32 wells is anticipated to commence mid to late April upon completion of certain operations by Delphi at the 1-19 tie-in point; and
- A fourth Montney extended reach horizontal Donnybrook operated drilling location has been surveyed and is anticipated to spud in June, 2012 (DEI: 50% working interest).
Further to the previously reported pooling of the Montney rights held by Donnybrook and partners in section 28-60-22 W5M with those held jointly by Trilogy Energy and TAQA North in the adjacent section 33-60-22 W5M, the initial extended reach, horizontal joint well on the pooled lands was spud on March 4 and reached total depth on April 2, 2012. The DEI Bigstone Hz 13-33-60-22 W5M was drilled from its surface location at 4-28-60-22 W5M to a total measured depth of 5,336 metres with a 2,590 metre horizontal length. Trilogy Energy will assume the role of Operator during the completion phase of operations. The well has been conditioned with a liner and packer assembly run in preparation for conducting a multi-stage (up to a 27 stage) fracture program.
Completion operations are scheduled to be underway as soon as practicable. Donnybrook holds an undivided 25% working interest in the pooled lands and participated as to a 25% working interest in the drilling of the DEI Bigstone Hz 13-33-60-22 W5M well.
The installation of surface facilities, including 3 phase separators, line heaters, tanks, measurement and monitoring equipment and construction of a 1.6 mile 8 inch pipeline to tie-in to the Delphi operated gas gathering system has been completed. The 03-29-60-22 W5M site of the facilities is the same surface location used to drill the DEI Bigstone Hz 14-29 and 15-32 wells; and both will be produced through the facilities. The pipeline will carry condensate, natural gas and natural gas liquids from our facilities to the Delphi system tie-in point in 01-19-60-22 W5M. Production from our wells will commence as soon as Delphi completes certain construction and start up operations at the 1-19 tie-in point, anticipated to be mid to late April.
Donnybrook has informed its partners that it has surveyed four new drilling locations and is planning to drill at the DEI Bigstone Hz 5-26-60-23 W5M (50% working interest) extended reach horizontal well on the west side of our Bigstone acreage block in June, 2012.
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 was tied-in and put on production in mid-March. Total net production at Simonette is currently approximately 500 boe per day of flush production.
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 timing of completion operations, commencement of production from the DEI Bigstone Hz 14-29 and Hz 15-32 wells, the drilling plans for the DEI Bigstone Hz 5-26 well, the anticipated spud date of the Company's third Simonette area horizontal well and the number of potential drilling locations. 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.
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