Donnybrook Energy Inc.
TSX VENTURE : DEI

Donnybrook Energy Inc.

February 01, 2012 20:46 ET

Donnybrook Energy Inc. Announces Conveyance of Assets

CALGARY, ALBERTA--(Marketwire - Feb. 1, 2012) - Donnybrook Energy Inc. ("Donnybrook") (TSX VENTURE:DEI) reports that Donnycreek Energy Inc. ("Donnycreek") has exercised its option and concluded the purchase of certain petroleum and natural gas rights (the "Purchased Assets") from Donnybrook for a purchase price of approximately $2.3 million. The option was granted to Donnycreek pursuant to the arrangement agreement made as of October 3, 2011 and in connection with the previously concluded plan of arrangement (the "Arrangement") involving the companies which closed on November 4, 2011.

The Purchased Assets are comprised of 9 gross sections of lands prospective for Montney liquid rich resource development in the Kakwa area of Alberta acquired by Donnybrook from September 1, 2011 to November 4, 2011 which are within 8 kilometres (5 miles) of the assets conveyed to Donnycreek by Donnybrook on November 4, 2011 pursuant to the Arrangement.

Donnybrook 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.

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

Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including statements regarding potential drilling inventories. 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 the forward-looking statements are reasonable, the 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 Donnybrook's Annual Information Form, management's discussion and analysis 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.

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.

Contact Information

  • Donnybrook Energy Inc.
    Malcolm Todd
    President and Chief Executive Officer
    (604) 684-2356
    (604) 684-4265 (FAX)
    www.donnybrookenergy.ca