Donnycreek Announces Participation in New Acreage & Well; Provides Operations Update Press Release: Donnycreek Energy Inc. – 2 hours 25 minutes ago
CALGARY, ALBERTA--(Marketwire - Jan. 30, 2013) -
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Donnycreek Energy Inc. ("Donnycreek" or the "Company") (TSX VENTURE:DCK) reports that it will be participating in the drilling of a new non-operated Montney well, immediately adjacent to Donnycreek's original 16.75 section 50% working interest Kakwa land block. The operator of the well has advised that spud is expected mid-February 2013. Donnycreek will participate as to a 23.75% working interest (subject to a 5% GORR) and after drilling this new exploratory well, Donnycreek will earn a similar working interest in 2.25 sections of Montney rights, all contiguous with Donnycreek's existing 50% Kakwa acreage. Once earned, Donnycreek will hold 235.5 gross (160 net) sections of Montney acreage in the greater Kakwa Wapiti area.
KAKWA MONTNEY 13 - 17 - 63 - 5 W6M
The first Donnycreek horizontal Kakwa Montney well at 13 - 17 - 63 - 5 W6M (the "13 - 17 Well") has been on production since December 1, 2012. Various bottlenecks associated with downstream processing limited December 2012 production. However, since January 4, 2013, when the operator added additional well site equipment, the 13 - 17 Well has maintained relatively stable gross production at a restricted rate averaging approximately 3.8 mmcf/d of natural gas plus NGLs and 575 bbl/d well head condensate. 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.
KAKWA MONTNEY 3 - 19 - 63 - 5 W6M AND 14 - 30 - 63 - 5 W6M
Donnycreek's third horizontal Kakwa Montney well at 3 - 19 - 63 - 5 W6M (the "3 - 19 Well") is being drilled from the same surface location as 14 - 30 - 63 - 5 W6M (the "14 - 30 Well"), Donnycreek's second horizontal Kakwa Montney well. The 3 - 19 Well is on schedule to be finished drilling in mid-February 2013, with completion operations anticipated to be finished by mid-March 2013. The 14 - 30 Well has been successfully tied into downstream processing facilities. In January 2013, the 14 - 30 Well was flowed for a brief interval, however the extremely high condensate/natural gas ratio (in excess of 200 bbl/mmcf) could not be handled at the third party gas plant. Upon the completion of the 3 - 19 Well, the 14 - 30 Well and the 3 - 19 Well will each be equipped similar to the 13 - 17 Well such that well head condensate can be separated at location, allowing for flow of the natural gas and NGLs to the third party facility and well head condensate trucked directly to sales. Donnycreek holds a 50% working interest in the 3 - 19 and 14 - 30 Wells.