| March 14, 2011 |
| Donnybrook Energy Inc.: Resthaven-Simonette Montney Operations Update Bigstone Farmout |
CALGARY, ALBERTA--(Marketwire - March 14, 2011) - Malcolm Todd, Chief Executive Officer of Donnybrook Energy Inc. ("Donnybrook" or the "Company") (TSX VENTURE:DEI) reports that the Company operated horizontal well at Resthaven (DEI 70%) has been drilled to a Total Measured Depth of 4,600 metres, with a horizontal length through the targeted Montney Formation of 1,200 metres. The original well location has been changed from 16-27 to 13-27 to optimize horizontal length. The well has been logged and a completion and production test is planned in the next few weeks. It is expected that the well will be completed with a 12 stage frac over the horizontal wellbore.
The Donnybrook operated horizontal 13-27 Resthaven well is located 5 kilometers east-north east of the Celtic Exploration Resthaven Montney discovery well (Celtic HZ 2-07-61-2 W6M) and 15 kilometers west of the Cequence HZ 1-22-61-27 W5M Simonette well (DEI 25% + 7.5% GORR BPO; 50% APO).
The Cequence operated Simonette HZ 1-22 well has been on production since early February and continues to perform well, producing at an average field rate of approximately 3.0 MMCF per day, with associated condensate and natural gas liquids of approximately 33 barrels per MMCF, with a 5,300 KPA casing pressure and 1,500 KPA tubing pressure. The well is currently producing into the Keyera operated Simonette gas plant and ancillary gathering system, which has in excess of 80 mmcf per day available processing capacity. It is managements' understanding that Keyera is currently reviewing its liquid extraction process at the gas plant and that higher liquid yields will ultimately be achieved.
The Company currently anticipates the drilling of 3 additional Simonette horizontal Montney wells in 2011, at least one of which is expected to spud this summer. The well locations will be situated to delineate the Montney formation over the current acreage position held by Donnybrook and Cequence.
Donnybrook's current land holdings in the Resthaven-Simonette area, where the 1-22 and 13-27 wells are located, is 38 gross sections - 9,842 ha (22 net sections - 5,698 ha). These wells, and wells being drilled by other operators in the region, continue to de-risk the Company's acreage in the Resthaven-Simonette area.
Bigstone
In addition, the Company reports it has farmed out a portion of its interest in a Donnybrook 100% owned 7 section block (1,813 ha) at Bigstone. Two farmees will earn a combined 50% after payout working interest (75% BPO) by paying 75% of the costs (drill, equip, completion and tie-in) of a horizontal well targeting the Montney Formation, and by reimbursing 50% of land costs incurred to date. Pursuant to the terms of the farmout, the well must be spud by August 1, 2011, with Donnybrook acting as operator. Bigstone is located on the same general Deep Basin Montney trend approximately 40 km south of Waskahigan.
ON BEHALF OF THE BOARD OF DONNYBROOK ENERGY INC.
Malcolm Todd, Chief Executive Officer
FORWARD-LOOKING STATEMENTS
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including statements regarding the timing of and completion of the Resthaven well, achieving higher liquids yields and the drilling of 3 additional Simonette wells. 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 our forward-looking statements are reasonable, our 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 information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. 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.
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 news release. | |