Donnycreek Energy Inc.
TSX VENTURE : DCK

Donnycreek Energy Inc.

April 12, 2012 17:46 ET

Donnycreek Energy Inc.: Kakwa Area Montney Operations Update

CALGARY, ALBERTA--(Marketwire - April 12, 2012) - Donnycreek Energy Inc. (TSX VENTURE:DCK) ("Donnycreek" or the "Company") reports that the first horizontal Montney well Hz 13-17-63-5 W6M, located on its 16 section (8 net) contiguous land block at Kakwa has been successfully drilled from its surface location at 16-8-63-5 W6M to a total measured depth of 5,071 metres including a horizontal leg that remained within the target interval for the entire 1,430 metres. The well was drilled within the expected timelines and on budget.

The well has been equipped with a packer-style completion system that will facilitate a fifteen stage frac. The operator is now expeditiously working to complete the well and expects that the completion may be accomplished in an accelerated time frame within the next three weeks. Uncertainty in weather conditions, particularly elevated precipitation, could however delay completion operations.

Donnycreek holds an undivided 25% working interest and 10% GORR on 75% before payout and a 50% working interest after payout in the well. Donnycreek holds a 50% working interest in the balance of the 16 section Kakwa Deep Basin land block.

As previously reported, Donnycreek has also engaged Syndicated Capital Corp. ("SCC") of Vancouver, British Columbia on a consulting basis, to provide investor relations services to Donnycreek. SCC will be paid $1,000 per month commencing February 1, 2012 on a month by month basis. Mr. A. Salman Jamal of Vancouver, British Columbia, is the principal of SCC. Donnycreek has granted an option to buy 102,200 shares to SCC exercisable at a price of 75 cents per common share for a period of up to three years. The agreement is subject to the approval of the TSX Venture Exchange.

Donnycreek is a Calgary based oil and natural gas production company focused on horizontal, multi-stage frac development in the Deep Basin area of west central Alberta. The Company holds working interests in 28 gross sections (7,250 ha/17,920 acres); 20 net sections (5,180 ha/12,800 acres) prospective for Montney, Bluesky, Wilrich and Falher liquid rich resource development.

Further information relating to Donnycreek is also available on its website at www.donnycreekenergy.com.

ON BEHALF OF THE BOARD OF DONNYCREEK 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 the timing of completion of the Kakwa 13-17 well and the number of frac stages. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Donnycreek'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 Donnycreek 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 Donnycreek's 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, Donnycreek 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.

Contact Information

  • Donnycreek Energy Inc.
    Malcolm Todd
    President and Chief Executive Officer
    (604) 684-2356
    (604) 684-4265 (FAX)
    www.donnycreekenergy.com