Donnybrook Energy Inc.

Donnybrook Energy Inc.

September 02, 2011 16:10 ET

Donnybrook Energy Enters Into Participation and Farm-Out Agreement

CALGARY, ALBERTA--(Marketwire - Sept. 2, 2011) - Malcolm Todd, Chief Executive Officer of Donnybrook Energy Inc. ("Donnybrook" or the "Company") (TSX VENTURE:DEI) reports that the Company has farmed out a portion of its interest in a Donnybrook 100% owned 7 section block (1,792 ha) at Prairie Creek, Alberta.

Donnybrook will participate as to a 25% working interest in a horizontal well (drill, complete and equip) and will retain a 25% working interest and a 10% GORR on a 75% working interest before payout, and a 50% working interest after payout in the well and in the balance of the 7 section block at Prairie Creek.

The Farmee will earn a 50% after payout working interest (75% before payout) by paying 75% of the costs (drill, complete and equip), and by reimbursing 50% of the Prairie Creek land costs incurred to date.

The Prairie Creek lands will form part of certain non-core oil and gas assets to be spun-out to a new corporation, Donnycreek Energy Inc., pursuant to the previously announced proposed reorganization of Donnybrook's business components into two separately listed public corporations by means of a plan of arrangement pursuant to the Business Corporations Act (Alberta).

Further information relating to the Company is also available on its website at


Malcolm Todd, Chief Executive Officer


Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including statements regarding the drilling plans for the Company's Prairie Creek acreage and the reorganization of Donnybrook's business components. 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 and other documents available at 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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