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DEI

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Share Name Share Symbol Market Type
TSXV:DEI TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Donnybrook Energy Inc.: Bigstone Drilling & Operations Update

27/01/2012 1:00am

Marketwired Canada


Donnybrook Energy Inc. ("Donnybrook" or the "Company") (TSX VENTURE:DEI) reports
that the Company's second Bigstone area horizontal well, Donnybrook Bigstone Hz
15-32- 60-22 W5M (50% working interest) encountered 2,744 metres of high quality
Montney reservoir with strong gas shows and excellent penetration rates during
drilling. The reservoir encountered is comparable to the Montney interval that
was successfully completed in the Donnybrook Bigstone Hz 14- 29-60-22 W5M (1,200
metres horizontal length) Montney discovery well which tested 4.3 mmcf/d and 295
barrels of NGLs (1,011 barrels of oil equivalent per day). The reservoir quality
encountered while drilling the 15-32 well confirms the play and reservoir
quality of the Montney at Bigstone extends at least as far north as the northern
boundary of Donnybrook's 1,792 hectares 7 section (896 hectares 3.5 section net)
contiguous land interests.


The 15-32 well is currently flowing natural gas, natural gas liquids and
hydraulic fracture fluids and is undergoing clean up after completion of the 23
stage hydraulic fracture operation. During the hydraulic fracture operation,
mechanical complications were encountered that have limited the number of stages
that have definitively been identified as successful. The final 5 fracture
stages were successfully completed with approximately 120 tons of proppant and
fracture fluids placed. At this time, preparations are underway to put
production tubing in place and to continue to flow the well. The flow rates for
the 15- 32 well will be released once the well has had further time to clean up
and the rates are stabilized.


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/d
and 770 barrels of condensate per day and an estimated 30-35 bbls of NGLs/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.


Surveys have been completed and contracts are in place to construct a 1.5 mile
tie-in for the 14-29 and 15-32 wells. Both wells were drilled from the same
surface location and will be tied into shared surface facilities and pipeline.
Field construction operations for the pipeline are expected to commence in mid
February with the facilities ready for production to start April 1st.


Donnybrook is currently waiting on final surface lease approval to commence
construction of 2 drilling pads that will facilitate the drilling of up to 6
additional horizontal Montney wells. Construction of the first surface wellsite
is expected to be completed by mid February. Donnybrook anticipates this well
will be drilled from a surface location at 4-28-60-22 W5M and will spud prior to
the end of February.


Donnybrook Energy Inc. holds interests in 45 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 potential drilling inventory of up to an equivalent of 180 gross (90
net) Montney horizontal drilling locations.


ON BEHALF OF THE BOARD OF DONNYBROOK ENERGY INC.

Malcolm Todd, President and 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 pipeline construction, production timing, the drilling pad
facilitation of up to 6 additional wells, the timing of surface wellsite
construction, the timing of the drilling of the 4-28 well and the number of
potential Montney horizontal 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 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. The risks, uncertainties, material assumptions and
other factors that could affect actual results are discussed in our management's
discussion and analysis, Annual Information Form 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
incl ude natural gas.


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