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
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a leader in the market space called network visibility solutions - it enables monitoring tools and Big Data analysis to access the data and be able to see the performance," explained Shay Morag, VP of Sales and Marketing at Niagara Networks, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.