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DEI

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Share Name Share Symbol Market Type
TSXV:DEI TSX Venture Common Stock
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Donnybrook Energy Inc.: Deep Basin Montney Operations Update

17/11/2011 9:33pm

Marketwired Canada


Donnybrook Energy Inc. (TSX VENTURE:DEI) ("Donnybrook" or the "Company")
provides an operations update on the Company's activities in the Deep Basin,
Alberta.


Bigstone, Alberta

The Company is scheduled to spud its second Bigstone Montney horizontal well in
the first week of December. The Donnybrook operated DEI Bigstone Hz 16-32-60-22
W5M well (50% working interest) will be drilled from the same drilling pad as
the Company's Bigstone Hz 3-29-60-22 W5M discovery well (25% BPO/50% APO working
interest), which tested in the last 24 hours of a 4 day production test at a
rate of approximately 4.3 million cubic feet per day (mmcf/day) of natural gas
and 295 barrels per day (bbls/day) of condensate from a 1,254 metre horizontal
section; 1,011 barrels of oil equivalent per day (boe/day), approximately 250
boe/day net to Donnybrook. The DEI Bigstone Hz 3-29 well was completed utilizing
a synthetic oil-based multi-stage frac.


The DEI Bigstone Hz 16-32 well has a planned 2,500 metre +/- horizontal section.
A third Donnybrook operated Bigstone Montney horizontal well (50% working
interest) is scheduled to spud in Q1 2012. The Company has 7 gross sections (3.5
net sections) at Bigstone, which would support an equivalent of 28 gross (14
net) horizontal wells.


In addition, discussions are underway with area industry partners to construct a
gathering system during Q1 2012. It is anticipated that all production from
Donnybrook's Bigstone project area will be on-stream during April 2012.


Simonette, Alberta

At Simonette, the operator recently completed and tested the 4-27-61-1 W6M
Montney horizontal well (50% working interest) utilizing a slick-water
multi-stage frac. Based on the inflow performance, the Simonette Hz 4-27 well,
which has a 1,500 metre horizontal section, is anticipated to initially produce
500 - 525 boe/day, approximately 250 boe/day net to Donnybrook, at a flowing
pressure of 930 kPa (135 psi) and 10,093 kPa (1,465 psi) casing pressure. Fifty
percent of the production volumes from this well are anticipated to be 43
degrees + API oil.


It is expected that the Simonette Hz 4-27 well will be tied-in and on-stream
into an adjacent gathering system by December 1, 2011. The Simonette Hz 4-27
well has successfully delineated the west side of the Company's acreage position
at Simonette. This further de-risking of the Company's Simonette land holdings
will enable the Company to drill a number of additional in-fill Montney
horizontal well locations. The Simonette Hz 4-27 well is located approximately 5
kilometres west of the Simonette Hz 1-22 discovery well put on-stream in spring
2011.


The Company has been advised by the operator that it plans to spud the Simonette
Hz 4-14 Montney well (50% working interest), the first week of December, subject
to weather conditions and rig availability. This well will delineate the
southeast portion of the Company's contiguous 33 gross (16.5 net) section
Montney block at Simonette. Donnybrook also has a horizontal Montney in-fill
well (50% working interest) budgeted for Q1 2012, to be drilled from the
Simonette Hz 1-22 discovery well drill pad.


Resthaven, Alberta

At Resthaven, as previously reported, Donnybrook has tied-in the DEI Resthaven
Hz 13-27 Montney horizontal well (70% working interest) into the ConocoPhillips
and Celtic Exploration ancillary gathering system. The DEI Resthaven Hz 13-27
well was completed but not fully tested due to the on-set of spring break-up in
April 2011. The DEI Resthaven Hz 13-27 well is expected to be on production
before year-end.


Corporate

The Company is funding these activities from its recently closed $12 million
bought deal financing completed through a syndicate led by Dundee Securities
Ltd. and including GMP Securities L.P. and Fraser Mackenzie Ltd. The Company
also recently completed its spinout of Donnycreek Energy Inc. (TSX VENTURE:DCK).
The spinout has provided Donnybrook with an initial $2.2 million of cash. These
funds, together with net cash on hand, totals in excess of $16.6 million and has
the Company well-positioned to carry out its Q4 2011 through Q2 2012 capital
expenditure program with a projected corporate Q2 2012 target production rate of
1,500 - 2,000 boe/day.


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 the spud of the Bigstone 16-32 well and horizontal length, the spud of
the Simonette 4-14 well, the timing of production from the Restahven 13-27 well,
the timing of tie-in, anticipated initial production, commodity mix and API of
the Simonette 4-27 well, the timing of the drilling of the Simonette 4-14 well,
drilling plans for the Company's Simonette, Resthaven and Bigstone acreage,
potential drilling locations, the drilling of additional wells and the
construction of a gathering system at Bigstone and projected corporate Q2 2012
production rate. 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
include natural gas.


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