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Donnycreek Continues Success with Kakwa Montney

Source: www.gulfoilandgas.com 3/21/2013, Location: North America

Donnycreek Energy Inc. (“Donnycreek” or the “Company”) reports that the third horizontal Kakwa Montney well 03-19-63-5 W6M (the “3-19 Well”) has been successfully completed and tested. The well was flow-tested for 161 hours. During the final 24 hours of flow-back the well averaged gross production rates of 1,798 boe/d consisting of 826 bbl/d condensate and 5,833 mscf/d natural gas (413 bbl/d and 2,917 mscf/d, or 899 boe/d combined, net to Donnycreek) against anticipated gathering system pressure of approximately 5,000 kPa.

The successful drilling and completion of the 3-19 Well continues to demonstrate that Donnycreek's Kakwa lands are in the heart of the liquids-rich Montney trend, validating the repeatability of this prolific play.

Equipping and facilities work will begin immediately to add additional liquids handling equipment on site that will accommodate both the 3-19 Well and the previously announced second horizontal Kakwa Montney well 14-30-63-5 W6M (the “14-30 Well”), drilled from the same surface location. It is currently anticipated that production from both wells will commence in mid-April. The Company anticipates the drilling of the next well on the Company’s 50% Kakwa block to commence post-break up.

The Company advises that although the initial rates from the 3-19 Well are very encouraging, production test results are not necessarily indicative of long-term performance or of ultimate recovery from the 3-19 Well.

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