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DEI

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TSXV:DEI TSX Venture Common Stock
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Donnybrook Continues to Prove Up Simonette Liquids Rich Montney Play

16/02/2012 1:15pm

Marketwired Canada


Donnybrook Energy Inc. (TSX VENTURE:DEI) ("Donnybrook" or the "Company") reports
that the Company's third Simonette area horizontal well 1-11-61-27 W5M (50%
working interest) has been drilled, completed and tested on the southeast part
of the Company's 33 section (16.5 net) contiguous land block at Simonette,
Alberta. The Cequence Energy operated step-out well was drilled to a total
measured depth of 5,027 metres, with a 1,829 metre lateral length, and completed
using a 16 stage foam fracture stimulation. After 7 days of cleanup and flow, at
the end of the test, the well was producing natural gas at a rate of 8.9 mmcf
per day and free condensate estimated at approximately 40 barrels per day (1,520
boe per day gross; 760 boe per day net) at a flowing casing pressure of 325 psi.
It is expected that additional natural gas liquids will be recovered from the
natural gas at the Keyera gas plant after this well is brought onstream in March
2012. The 1-11 well is the most successful well drilled with Cequence on the
joint 50/50 Simonette acreage block to date.


Donnybrook believes the success to date of its Montney horizontal drilling
program serves to de-risk approximately 50% of its land at Simonette for Montney
liquids-rich gas development providing an inventory of 56 (28 net) development
drilling locations. The Company has an additional 19 sections (9.5 net) of land
at Simonette that are considered highly prospective for the Montney.


BIGSTONE

At the Company's 50% working interest Bigstone property, production tubing has
been installed in the Bigstone Hz 15-32-60-22 W5M well and a 7 day production
test has been completed. The well flowed at an average rate of 1.1 mmcf of
natural gas per day. As previously reported, a review of the 23 stage hydraulic
fracture stimulation that was performed on the well indicates that only 5 of the
23 stages of the planned fracture program were successfully stimulated. This
rate is consistent with the interpretation that only 5 of the 23 stages are
contributing to the well's production. As a result the reported well completion
test rates do not reflect the quality of reservoir the well encountered while
drilling. The 15-32 well encountered 2,744 metres of high quality Montney
reservoir with strong gas shows and excellent penetration rates. The reservoir
encountered is comparable to the Montney interval that was successfully
completed in the Donnybrook Hz 14-29-60-22 W5M Bigstone discovery well (25% BPO;
50% APO). The 14-29 well has a 1,200 metre lateral length and tested 4.3 mmcf of
natural gas per day and 295 barrels of NGLs per day - a ratio of 70 barrels of
NGLs per mmcf of gas (1,011 barrels of oil equivalent per day). Construction
operations for the pipeline and surface facilities connecting the 14-29 and
15-32 wells is projected to start late February with wells and facilities ready
for production to start by April 1st, 2012.


Bigstone is located in an area of significant industry activity and recent
drilling and completion successes. A 2,760 metre extended reach horizontal well
has been recently drilled and completed by an industry competitor offsetting
Donnybrook's lands 800 metres to the west and parallel to Donnybrook's 14-29
well. This well terminated approximately 200 metres from Donnybrook's land
block. The operator of the well reported a final 24 hour test rate, after a 4
day flow period, of 12.5 mmcf of natural gas per day and 770 barrels of
condensate per day and an estimated 30-35 barrels of NGLs per mmcf. This well
further demonstrates the potential of the Montney reservoir to the west and
indicates the reservoir continues to the northwest onto Donnybrook's land block.


Donnybrook's third operated horizontal Montney location at Bigstone (25% working
interest) is scheduled to spud within 2 weeks from a surface location at
4-28-60-22 W5M and will be an extended reach Hz well with approximately 2,700
metres of lateral length planned to a bottom hole location at 13-33-60-22 W5M.


At Bigstone, 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 rich
development drilling locations.


RESTHAVEN

At Resthaven, the 13-27-61-02 W6M (70% working interest) horizontal Montney well
was put onstream in the second week of February 2012. In April 2011, the 13-27
well was completed with a 12-stage slick-water fracture stimulation program; and
the frac clean-up was suspended and the well was shut-in due to the on-set of
spring break-up.


During the abbreviated frac clean-up, the well had only recovered 30% (1,900 m3
of the 6,500 m3) of the frac fluid and flowed up seven inch casing at rates of
up to 3.25 mmcf per day of natural gas. Now that the well is tied-in, the frac
clean-up will resume to recover the balance of the frac fluid and the well will
be flow tested in-line to determine an estimated flow rate and liquids (oil and
NGLs) content, which is expected to be approximately 50 barrels per mmcf of
natural gas.


At Resthaven, Donnybrook has 5 gross (2.66 net) sections of P&NG rights located
8 kilometres (5 miles) west of the western edge of the Company's Simonette
acreage block.


Donnybrook is debt free and has the capital resources to carry out its current
2012 drilling and infrastructure capital program.


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 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

FORWARD-LOOKING STATEMENTS

Certain information set forth in this news release contains forward-looking
statements or information ("forward-looking statements"), including statements
regarding the estimated free condensate and the additional potential natural gas
liquids recovery from the 1-11 Simonette well, the de-risking of approximately
50% of Donnybrook's lands and prospective lands at Simonette, the timing of
construction operations and production for the 14-29 and 15-32 Bigstone wells,
the estimated condensates from an industry competitor's well at Bigstone, the
timing of the spud of Donnybrook's third operated horizontal Montney well at
Bigstone, the estimated flow rate and liquids content of its 13-27 Resthaven
well and potential drilling inventories. 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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