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DEI

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TSXV:DEI TSX Venture Common Stock
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Donnybrook Provides the Results of Independent Resource Study for Bigstone and Simonette Properties

28/05/2012 2:05pm

Marketwired Canada


Donnybrook Energy Inc. (TSX VENTURE:DEI) ("Donnybrook" or the "Company") reports
that the independent resource study for its Bigstone and Simonette Montney
properties has been completed.


With the successful drilling, completion and initial production profile of the
recent wells in the Montney resource play in the Bigstone and Simonette area and
to quantify the long-term future reserve and resource potential of the play, the
Company commissioned GLJ Petroleum Consultants Ltd. to conduct an independent
resource study (the "Resource Study") for a portion of Donnybrook's Montney land
holdings in the Bigstone and Simonette area. The findings confirm that
Donnybrook's Montney holdings represent a significant long-term growth
opportunity with considerable reserves and reserves potential.


The Resource Study is effective April 30, 2012 and was prepared in accordance
with National Instrument 51-101 - Standards of Disclosure for Oil and Gas
Activities ("NI 51-101") of the Canadian Oil and Gas Evaluation Handbook ("COGE
Handbook").


The following table summarizes the results of the Resource Study.

Reserve and Economic Contingent Resources (Montney) as at April 30, 2012

The Resource Study includes a portion Donnybrook's Montney interest land of 46
gross sections (22.66 net sections).




                                            TOTAL PROVED               TOTAL
                        TOTAL PROVED       PLUS PROBABLE                 PPP
                        ----------------------------------------------------
                                        Oil Equivalent (Mboe)               
                        ----------------------------------------------------
Bigstone Area                    587               1,217               1,601
Simonette Area                 2,649               4,714               5,994
----------------------------------------------------------------------------
Total                          3,237               5,931               7,595
                                                                            
                                             PVBT10 (M$)                    
                        ----------------------------------------------------
Bigstone Area                  6,121              11,437              15,497
Simonette Area                25,866              48,341              66,427
----------------------------------------------------------------------------
Total                         31,986              59,778              81,924
                                                                            
                        LOW ESTIMATE       BEST ESTIMATE       HIGH ESTIMATE
                          CONTINGENT          CONTINGENT          CONTINGENT
                           RESOURCES           RESOURCES           RESOURCES
                        ----------------------------------------------------
                                        Oil Equivalent (Mboe)               
                        ----------------------------------------------------
Bigstone Area                      0               2,442               5,581
Simonette Area                     0               3,971              12,918
----------------------------------------------------------------------------
Total                              0               6,413              18,499
                                                                            
                                             PVBT10 (M$)                    
                        ----------------------------------------------------
Bigstone Area                      0              19,562              44,837
Simonette Area                     0              31,989             111,840
----------------------------------------------------------------------------
Total                              0              51,551             156,677



Contingent resources are those quantities of petroleum estimated, as of a given
date, to be potentially recoverable from known accumulations using established
technology or technology under development, but may not currently be considered
commercially recoverable due to one or more contingencies. Contingent resources
are in addition to reserves booked as proved, probable and possible.


The contingencies that prevent the economic contingent resources from being
classified as reserves are due to the early stage of the development. Additional
drilling, completion, test and production history results are required before
these contingent resources are converted to reserves and for a development plan
to be committed to. A development plan for a project such as this will likely be
developed sequentially over a number of drilling seasons and is subject to
annual budget constraints, orderly development on a staged basis, the timing of
the growth of third party infrastructure, the short and long-term view on gas
prices, the results of exploration and development activities in the area and
possible infrastructure capacity constraints.


Information Regarding Disclosure on Contingent Resources

Uncertainty ranges are described by the COGE Handbook as low, best and high
estimates for resources as follows:


Low Estimate: This is considered to be a conservative estimate of the quantity
that will actually be recovered. It is likely that the actual remaining
quantities recovered will exceed the low estimate. If probabilistic methods are
used, there should be at least a 90 percent probability (P90) that the
quantities actually recovered will equal or exceed the low estimate.


Best Estimate: This is considered to be the best estimate of the quantity that
will actually be recovered. It is equally likely that the actual remaining
quantities recovered will be greater or less than the best estimate. If
probabilistic methods are used, there should be at least a 50 percent
probability (P50) that the quantities actually recovered will equal or exceed
the best estimate.


High Estimate: This is considered to be an optimistic estimate of the quantity
that will actually be recovered. It is unlikely that the actual remaining
quantities recovered will exceed the high estimate. If probabilistic methods are
used, there should be at least a 10 percent probability (P10) that the
quantities actually recovered will equal or exceed the high estimate.


Barrels of Oil Equivalent

Where applicable, natural gas has been converted to barrels of oil equivalent
("boe") based on 6 Mcf:1 boe. The boe conversion ratio is based on an energy
equivalent conversion method primarily applicable at the burner tip and does not
represent a value equivalent at the wellhead. Given that the value ratio based
on the current price of crude oil as compared to natural gas is significantly
different than the energy equivalency of the 6:1 conversion ratio, utilizing the
6:1 conversion ratio may be misleading as an indication of value.


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

This press release contains forward-looking statements or information
("forward-looking statements") within the meaning of applicable securities laws.
The use of any of the words "will", "expects", "believe", "plans", "potential"
and similar expressions are intended to identify forward-looking statements.
More particularly and without limitation, this press release contains
forward-looking statements concerning the recognition of additional resources
under the heading "Reserve and Economic Contingent Resources (Montney) as at
April 30, 2012".


The forward-looking statements in this press release are based on certain key
expectations and assumptions made by Donnybrook, including the quality of the
Montney reservoir, continued performance from existing wells, future drilling
programs and performance from new wells, the growth of infrastructure, well
density per section, recovery factors and development necessarily involve known
and unknown risks and uncertainties. Although Donnybrook believes that the
expectations and assumptions on which such forward-looking statements are based
are reasonable, undue reliance should not be placed on the forward-looking
statements because Donnybrook can give no assurance that they will prove to be
correct. There is no certainty that Donnybrook will achieve commercially viable
production from its undeveloped lands and prospects.


Since forward-looking statements address future events and conditions, by their
very nature they involve inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number of factors
and risks. These include, but are not limited the risks associated with the oil
and gas industry in general such as: operational risks in development,
exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections relating to
reserve, production, costs and expenses; health, safety and environmental risks;
commodity price and exchange rate fluctuations; marketing and transportation of
petroleum and natural gas and loss of markets; environmental risks; competition;
incorrect assessment of the value of acquisitions; failure to realize the
anticipated benefits of acquisitions; ability to access sufficient capital from
internal and external sources; stock market volatility; and changes in
legislation, including but not limited to tax laws, royalty rates and
environmental regulations. Readers are cautioned that the foregoing list of
factors is not exhaustive. Additional information on these and other factors
that could affect the operations or financial results of Donnybrook are included
in Donnybrook's Annual Information Form, management's discussion and analysis
and other documents filed with applicable securities regulatory authorities and
may be accessed through the SEDAR website (www.sedar.com). The forward-looking
statements contained in this press release are made as of the date hereof and
Donnybrook undertakes no obligation 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. The
forward-looking statements contained in this press release are expressly
qualified by this cautionary statement.


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