Donnybrook Energy Inc.
TSX VENTURE : DEI

Donnybrook Energy Inc.

June 22, 2011 07:00 ET

Donnybrook Energy Inc.: Deep Basin, West Central Alberta Update

CALGARY, ALBERTA--(Marketwire - June 22, 2011) - Malcolm Todd, Chief Executive Officer of Donnybrook Energy Inc. ("Donnybrook" or the "Company") (TSX VENTURE:DEI) reports that Donnybrook has finalized an agreement with Cequence Energy Ltd. ("Cequence") whereby Cequence will cash equalize into certain lands totaling 5 sections that Donnybrook currently holds 100% at Simonette, Alberta.

In return, Cequence, as operator, will commit to the drilling of a Test Well on a nearby jointly held section (50% Donnybrook/50% Cequence) with Cequence paying 70% of the drill and complete costs to earn a 50% working interest at tie-in point. Donnybrook will pay 30% of the drill and complete cost to retain a 50% working interest in the subject well which is expected to spud on or around August 1, 2011.

Initially, the Test Well will be drilled as a strat test into the Montney formation and if successful it will then be drilled horizontally for approximately 1,400 metres.

This well will be the first of three Montney horizontal multi-stage frac locations contemplated to be drilled between August and December of 2011 on Donnybrook's 50% lands at Simonette.

At Bigstone, Alberta, Donnybrook, as operator, has received the licence for the drilling of its Montney horizontal well (25% BPO/50% APO) with a horizontal length of approximately 1,400 metres. Donnybrook has begun well site construction and the well is expected to spud early in the third quarter of 2011. The well is located within five miles of a recently announced liquids rich natural gas two mile horizontal Montney well that after clean-up reportedly flowed on test over the last day at an average rate of 13.1 MMCF of natural gas and 650 barrels of crude oil and NGLs per day (2,800 boe per day). Donnybrook and its partners hold 7 contiguous sections of Triassic Montney P&NG rights at Bigstone.

The wet spring weather in the area of Donnybrook's operations has delayed the Company's ability to access the DEI Hz 13-27 well at Resthaven which was drilled in the first quarter of 2011 and completed in April. The DEI Hz 13-27 well in which Donnybrook has a 70% working interest is still pending tie-in to the Conoco Phillips plant which will occur as soon as conditions permit. Once the well is tied-in it will be flowed back for an in-line production test. It is reasonable to expect that this may occur by mid July 2011.

Donnybrook Energy Inc. holds varying working interests in 61 gross sections of petroleum and natural gas rights prospective for Montney, Wilrich, Bluesky and Falher liquid rich natural gas resource development in the Deep Basin area of West Central Alberta.

Further information relating to the Company is also available on its website at www.donnybrookenergy.ca.

ON BEHALF OF THE BOARD OF DONNYBROOK ENERGY INC.

Malcolm 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 the tie-in of the 13-27 well, the spud of the Bigstone well, drilling plans for the Company's Simonette acreage, potential drilling locations and the drilling of additional wells. 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 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.

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