Donnybrook Energy Inc.
TSX VENTURE : DEI

Donnybrook Energy Inc.

May 28, 2012 09:05 ET

Donnybrook Provides the Results of Independent Resource Study for Bigstone and Simonette Properties

CALGARY, ALBERTA--(Marketwire - May 28, 2012) - 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 PROVED
PLUS PROBABLE
TOTAL
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$)
Bigstone Area 6,121 11,437 15,497
Simonette Area 25,866 48,341 66,427
Total 31,986 59,778 81,924
LOW ESTIMATE
CONTINGENT
RESOURCES
BEST ESTIMATE
CONTINGENT
RESOURCES
HIGH ESTIMATE
CONTINGENT
RESOURCES
Oil Equivalent (Mboe)
Bigstone Area 0 2,442 5,581
Simonette Area 0 3,971 12,918
Total 0 6,413 18,499
PVBT10 (M$)
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.

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