Welcome!

News Feed Item

Donnycreek Announces Third Quarter Results & Field Operations Update

CALGARY, ALBERTA -- (Marketwired) -- 06/26/14 -- Donnycreek Energy Inc. ("Donnycreek" or the "Company") (TSX VENTURE:DCK) reports that it has filed its condensed interim financial statements and related Management's Discussion and Analysis ("MD&A") for the three and nine months ended April 30, 2014 with 2013 comparatives on SEDAR. Selected financial and operational information is outlined below and should be read in conjunction with Donnycreek's condensed interim financial statements for the three and nine months ended April 30, 2014 and its audited financial statements and related MD&A for the year ended July 31, 2013 which are available for review at www.sedar.com and on our website at www.donnycreekenergy.com.

                                                                            
FINANCIAL AND OPERATING HIGHLIGHTS                                          
                                                                            
                         Three Months Ended          Nine Months Ended      
----------------------------------------------------------------------------
                        30-Apr-14     30-Apr-13     30-Apr-14     30-Apr-13 
----------------------------------------------------------------------------
Petroleum and                                                               
 natural gas sales   $  6,914,196  $  1,327,463  $ 10,909,301  $  2,230,879 
Funds flow from                                                             
 operations(1)       $  4,831,782  $    753,544  $  6,823,045  $  1,098,047 
  Basic ($/share)    $       0.09  $       0.02  $       0.13  $       0.03 
  Diluted ($/share)  $       0.09  $       0.02  $       0.13  $       0.03 
Net income (loss)    $  4,390,715  $   (754,969) $  5,238,080  $ (1,562,711)
  Basic ($/share)    $       0.08  $      (0.02) $       0.10  $      (0.04)
  Diluted ($/share)  $       0.08  $      (0.02) $       0.10  $      (0.04)
Capital expenditures $ 13,397,914  $  5,459,698  $ 35,530,287  $ 22,231,245 
Working capital      $  8,562,773  $ 15,197,516  $  8,562,773  $ 15,197,516 
Total assets         $ 87,913,804  $ 47,895,080  $ 87,913,804  $ 47,895,080 
----------------------------------------------------------------------------
                                                                            
Operating                                                                   
----------------------------------------------------------------------------
Average daily                                                               
 production (sales)                                                         
  Crude oil (bbls/d)          0.0           0.2           0.5           0.6 
  Natural gas                                                               
   (mcf/d)                3,190.9         725.0       1,836.5         473.7 
  NGLs (bbls/d)(2)          523.9         105.2         295.7          58.8 
----------------------------------------------------------------------------
  Total (boe/d)           1,055.7         226.2         602.3         138.4 
----------------------------------------------------------------------------
Average realized                                                            
 price                                                                      
  Crude oil ($/bbls) $          -  $      81.03  $      91.17  $      82.06 
  Natural gas                                                               
   ($/mcf)           $       6.72  $       4.41  $       5.34  $       3.67 
  NGLs ($/bbls)(2)   $     108.63  $      95.40  $     102.31  $      87.43 
----------------------------------------------------------------------------
Netback ($/boe)                                                             
  Petroleum and                                                             
   natural gas sales $      73.59  $      65.92  $      66.35  $      59.08 
  Royalties          $      (4.52) $      (3.75) $      (3.86) $      (2.80)
  Operating expenses                                                        
   (incl.                                                                   
   transportation)   $     (13.98) $     (14.48) $     (13.45) $     (11.77)
----------------------------------------------------------------------------
Operating                                                                   
 netbacks(3)         $      55.09  $      47.69  $      49.04  $      44.51 
----------------------------------------------------------------------------
                                                                            
Share Information                                                           
----------------------------------------------------------------------------
Common shares                                                               
 outstanding           54,920,530    41,735,530    54,920,530    41,735,530 
Weighted average                                                            
 common shares                                                              
 outstanding           54,697,609    41,592,552    51,561,702    35,610,924 
----------------------------------------------------------------------------
Notes:                                                                      
(1) Funds flow from operations are petroleum and natural gas revenue and    
interest income less producing and operating expenses, royalties,           
exploration and evaluation expenditures and general and administrative      
expenses.                                                                   
(2) References to NGLs include condensate.                                  
(3) Operating netbacks are determined by deducting royalties, production    
expenses and transportation and selling expenses from petroleum and natural 
gas revenue.                                                                

Operations Update

As of June 26, 2014, the Company has a total of 11 Montney horizontal natural gas wells, with an average working interest of 45.34%, in 20.75 gross sections at Kakwa. Eight of the wells are tied in and producing, two wells have been drilled and cased, and one well is currently being drilled and expected to reach total depth in early July 2014. The Company holds a 50% working interest in 16.75 gross sections, a 23.75% working interest in 2 gross sections and a 62% working interest in 2 gross sections at Kakwa.

Production growth continued in the Company's fiscal third quarter ("Q3, 2014") with the addition of two new 50% working interest Montney horizontal natural gas wells in February 2014 contributing to record high average production volumes of 1,056 BOE/d for Q3, 2014 - approximately 50% condensate. This was achieved while also having some production being shut in for safety reasons while drilling operations were being conducted on an existing lease with two producing wells. Revenues for the quarter exceeded $6.9 million with condensate prices averaging approximately $108.63/bbl and gas prices averaging approximately $6.72/mcf.

The Company has accelerated its development plans at Kakwa with the drilling of three 50% working interest extended length Montney horizontal wells from a single surface pad in an effort to reduce costs and improve operating efficiencies. As of June 26, 2014, two wells have been drilled and cased and the third is expected to reach total depth by early July 2014. Production from this 3 well pad is expected to be brought on in September 2014. In July 2014, this drilling rig is then scheduled to move to another existing pad site with a single producing well to drill two development Montney horizontal wells. It is expected that this drilling rig will then be utilized to continuously drill development wells until the end of calendar 2014.

A second drilling rig has been secured to drill a vertical Montney stratigraphic well at Kakwa followed by a Montney horizontal well west of the current developed land block to further delineate the western portion of the acreage block. The vertical well is expected to be drilled in August 2014 at 07-15-63-6 W6M followed by a kick off of a horizontal leg targeting 01-14-63-6 W6M.

As reported on May 22, 2014, a Corporate reserves update was undertaken to evaluate the impact of new natural gas wells brought on production at Kakwa. Effective March 31, 2014, McDaniel & Associates Consultants Limited ("McDaniel") evaluated all of the Company's producing assets. Based on the McDaniel's evaluation, the Company has booked 16.4 million barrels of oil equivalent of proved plus probable ("P+P") reserves and 10.8 million barrels of oil equivalent of total proved ("TP") reserves. The net present value at 10% discount is estimated to be $249.2 million for the P+P reserves and $162.3 million for the TP reserves.

Donnycreek is a Calgary based public oil and gas company which holds approximately 439 gross (313 net) sections of petroleum and natural gas rights, with an average working interest of approximately 70%, prospective primarily for Montney liquid rich natural gas resource exploration and development all of which are located in the Deep Basin area of west-central Alberta.

ADVISORY ON FORWARD-LOOKING STATEMENTS: This news release contains certain forward-looking information and statements ("forward-looking statements") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements. In particular, but without limiting the foregoing, this news release contains statements concerning the timing of the drilling of wells, the timing to bring on further production, future drilling plans and the primary prospective zone of exploration and development on the Company's lands.

Forward-looking statements are based on a number of material factors, expectations or assumptions of Donnycreek which have been used to develop such statements and information but which may prove to be incorrect. Although Donnycreek believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Donnycreek can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Further, events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including, without limitation: whether the Company's exploration and development activities respecting its prospects will be successful or that material volumes of petroleum and natural gas reserves will be encountered, or if encountered can be produced on a commercial basis; the ultimate size and scope of any hydrocarbon bearing formations on its lands; that drilling operations on its lands will be successful such that further development activities in these areas are warranted; that Donnycreek will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities will be consistent with past operations;

the general stability of the economic and political environment in which Donnycreek operates; drilling results; field production rates and decline rates; the general continuance of current industry conditions; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Donnycreek to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Donnycreek operates; and the ability of Donnycreek to successfully market its oil and natural gas products; changes in commodity prices; changes in the demand for or supply of the Company's products; unanticipated operating results or production declines; changes in tax or environmental laws, changes in development plans of Donnycreek or by third party operators of Donnycreek's properties, increased debt levels or debt service requirements; inaccurate estimation of Donnycreek's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Donnycreek's public disclosure documents. Additional information regarding some of these risks, expectations or assumptions and other factors may be found under in the Company's Annual Information Form for the year ended July 31, 2013 and the Company's Management's Discussion and Analysis prepared for the year ended July 31, 2013. The reader is cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and Donnycreek undertakes no obligations 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.

Statements relating to reserves are by their nature forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves can be profitably produced in the future. It should not be assumed that the estimated future net cash flow shown below is representative of the fair market value of the Company's properties. There is no guarantee that the estimated reserves will be recovered or at the commodity prices used to calculate the net present value of such reserves. Actual crude oil, natural gas liquids and natural gas reserves may be greater than or less than the estimates provided herein.

In this news release the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (6 mcf) of natural gas for one barrel (bbl) of oil based on an energy equivalency conversion method. Boes may be misleading particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

NON-GAAP MEASURES

In this document "Funds flow from operations" and "Operating Netbacks", collectively the "Non-GAAP measures", are used and do not have any standardized meanings as prescribed by IFRS. They are used to assist management in measuring the Company's ability to finance capital programs and meet financial obligations. Funds flow from operations refers to cash flows from operating activities before net changes in operating working capital.

Non-GAAP measures should not be considered in isolation or construed as alternatives to their most directly comparable measure calculated in accordance with IFRS, or other measures of financial performance calculated in accordance with IFRS. The Non-GAAP measures are unlikely to be comparable to similar measures presented by other issuers.

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.

Contacts:
Donnycreek Energy Inc.
Jack Marsh
Chief Operating Officer
403-255-2356

Donnycreek Energy Inc.
Malcolm Todd
Chief Executive Officer
403-237-5700
403-265-3506 (FAX)
www.donnycreekenergy.com.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In his session at Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to maximize project result...
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, Head of Global Sales at Cloud Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Archi...
Digital transformation has increased the pace of business creating a productivity divide between the technology haves and have nots. Managing financial information on spreadsheets and piecing together insight from numerous disconnected systems is no longer an option. Rapid market changes and aggressive competition are motivating business leaders to reevaluate legacy technology investments in search of modern technologies to achieve greater agility, reduced costs and organizational efficiencies. ...