Donnycreek Provides Kakwa Operations Update; Additional Montney Land Acquired at Wapiti
CALGARY, ALBERTA--(Marketwire - Nov. 28, 2012) -
THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA TO UNITED STATES NEWSWIRE SERVICES OR UNITED STATES PERSONS
Donnycreek Energy Inc. ("Donnycreek" or the "Company") (TSX VENTURE:DCK) reports that all contracts are now in place to begin flowing in early December 2012 natural gas and condensate from the Company's Kakwa 13-17-63-5 W6M horizontal Montney discovery well (the "13-17 Well"). Donnycreek has a 25% working interest plus 10% GORR on 75% working interest before payout; 50% working interest after payout in the 13-17 Well.
The Company's second horizontal Montney well; Kakwa 14 - 30 - 63 - 5 W6M (DCK: 50% working interest) was successfully completed in early November 2012 and construction of well site facilities and pipeline to tie into the Company's previously built mainline has commenced and is on schedule to be completed early in the new year.
The Company has a 50% working interest in 16.75 gross (8.375 net) sections at Kakwa, Alberta.
Donnycreek also reports that it has recently acquired an additional 48 gross sections (36 net) of Montney petroleum and natural gas ("P&NG") rights, to now hold 178 gross (133.5 net) sections prospective for Montney liquid rich natural gas production at its Company operated Wapiti, Alberta play (DCK: 75% working interest).
In addition, the Company has a 40% operated working interest in 33 gross (13.2 net) sections of Montney P&NG rights at Donnycreek's Chicken, Alberta property.
About Donnycreek Energy Inc.
Donnycreek Energy Inc. is a Calgary based public oil and gas company which holds 232 gross sections (59,392 hectares; 148,480 acres); 159 net sections (40,704 net hectares; 101,760 acres) of P&NG rights prospective for either Montney, Bluesky, Wilrich and Falher liquid rich natural resource development in its 3 core areas: Kakwa, Wapiti and Chicken, 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.
ON BEHALF OF THE BOARD OF DONNYCREEK ENERGY INC.
Malcolm F.W. Todd, Chief Executive Officer
ADVISORY ON FORWARD-LOOKING STATEMENTS: This news 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 foregoing, this news release contains statements regarding the timing to begin flowing natural gas and condensate from the 13-17 Well and the prospective zones for 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 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. 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 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's efforts to raise additional capital will be successful; that Donycreek 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 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. Additional information regarding some of these risk factors may be found under "Risk Factors" in the Company's Management's Discussion and Analysis prepared for the year ended July 31, 2012. The reader is cautioned not to place undue reliance on this 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Donnycreek Energy Inc.
President and Chief Executive Officer
(604) 684-4265 (FAX)