Donnybrook Reports Fiscal Year-End Reserves at December 31, 2013
February 03 2014 - 4:33PM
Marketwired
Donnybrook Reports Fiscal Year-End Reserves at December 31, 2013
CALGARY, ALBERTA--(Marketwired - Feb 3, 2014) - Donnybrook
Energy Inc. ("Donnybrook" or the "Company") (TSX-VENTURE:DEI)
reports the results of its December 31, 2013 Reserves Assessment
and Evaluation of certain of its Alberta oil and gas properties, as
evaluated by GLJ Petroleum Consultants ("GLJ") in accordance with
National Instrument 51-101 - Standards of Disclosure for Oil
and Gas Activities ("NI 51-101").
A summary of the Company's reserves volumes according to reserve
category as at December 31, 2013 is as provided in the following
table. Unless otherwise stated, the reserves information included
in this release is stated on a "company interest" basis, which
represents Donnybrook's working interest (operated and
non-operated) share of remaining reserves before deduction of
royalties and including any royalty interests. Numbers presented in
table may not add exactly due to rounding.
COMPANY SHARE OF REMAINING RESERVES (GROSS) |
|
Natural Gas |
Natural Gas Liquids |
Total Oil Equivalent |
Reserves Category |
(MMcf) |
(Mbbl) |
(Mbbl) |
Proved |
|
|
|
|
Producing |
2,492 |
33 |
448 |
|
Undeveloped |
3,332 |
144 |
700 |
Total Proved |
5,824 |
177 |
1,148 |
Probable |
9,032 |
570 |
2,076 |
Total Proved plus Probable |
14,856 |
747 |
3,223 |
A summary of the Company's estimated future net revenues
associated with Donnybrook's reserves as at December 31, 2013 based
on the GLJ December 31, 2013 price forecast is provided in the
following table. It should not be assumed that the net present
values estimated by GLJ represent the fair market value of the
reserves. Numbers presented in table may not add exactly due to
rounding.
Before Income Taxes Discounted at (%/year) |
|
0% |
5% |
10% |
15% |
20% |
Reserves Category |
(M$) |
(M$) |
(M$) |
(M$) |
(M$) |
Proved |
|
|
|
|
|
|
Producing |
7,805 |
6,196 |
5,146 |
4,417 |
3,886 |
|
Undeveloped |
7,917 |
4,618 |
2,651 |
1,381 |
511 |
Total Proved |
15,722 |
10,813 |
7,796 |
5,798 |
4,397 |
Probable |
41,069 |
24,296 |
15,917 |
11,110 |
8,069 |
Total Proved plus Probable |
56,791 |
35,109 |
23,713 |
16,908 |
12,466 |
Relevant portions of the GLJ January 1, 2014 price forecast used
in the Company's evaluation are as follows:
|
|
Natural Gas |
|
Light Crude Oil |
|
Pentanes Plus |
|
|
|
|
Henry Hub |
AECO Gas Price |
|
WTI |
Edmonton |
|
Edmonton |
Inflation Rates |
Exchange Rate |
Year |
|
($U.S./ MMBtu) |
($CDN/ MMBtu) |
|
($US/ bbl) |
($CDN/ bbl) |
|
($CDN/ bbl) |
(%/ year) |
($US/ $CDN) |
Forecast |
|
|
|
|
|
|
|
|
|
|
2014 |
|
4.25 |
4.03 |
|
97.50 |
92.76 |
|
105.20 |
2.0 |
0.9500 |
2015 |
|
4.50 |
4.26 |
|
97.50 |
97.37 |
|
107.11 |
2.0 |
0.9500 |
2016 |
|
4.75 |
4.50 |
|
97.50 |
100.00 |
|
107.00 |
2.0 |
0.9500 |
2017 |
|
5.00 |
4.74 |
|
97.50 |
100.00 |
|
107.00 |
2.0 |
0.9500 |
2018 |
|
5.25 |
4.97 |
|
97.50 |
100.00 |
|
107.00 |
2.0 |
0.9500 |
2019 |
|
5.50 |
5.21 |
|
97.50 |
100.00 |
|
107.00 |
2.0 |
0.9500 |
2020 |
|
5.63 |
5.33 |
|
98.54 |
100.77 |
|
107.82 |
2.0 |
0.9500 |
2021 |
|
5.74 |
5.44 |
|
100.51 |
102.78 |
|
109.97 |
2.0 |
0.9500 |
2022 |
|
5.86 |
5.55 |
|
102.52 |
104.83 |
|
112.17 |
2.0 |
0.9500 |
2023 |
|
5.97 |
5.66 |
|
104.57 |
106.93 |
|
114.41 |
2.0 |
0.9500 |
2024+ |
|
+2.0%/yr |
+2.0%/yr |
|
+2.0%/yr |
+2.0%/yr |
|
+2.0%/yr |
2.0 |
0.9500 |
The Company currently has 195,436,066 common shares issued and
outstanding, no debt and an estimated net working capital position
of approximately $3.3 million.
Donnybrook holds an interest in 21 gross sections (7.6 net
sections) of petroleum and natural gas rights at Bigstone and Fir,
Alberta.
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
Certain information set forth in this news release contains
forward-looking statements or information ("forward-looking
statements"), including statements regarding the Company's future
net revenues. By their nature, forward-looking statements are
subject to numerous risks and uncertainties, some of which are
beyond Donnybrook'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 Donnybrook believes that
the expectations in our forward-looking statements are reasonable,
our 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 our
Annual Information Form 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, Donnybrook 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. This news release shall not constitute
an offer to sell or the solicitation of any offer to buy securities
in any jurisdiction.
All evaluations and reviews of future net revenue are stated
prior to any provision for interest costs or general and
administrative costs and after the deduction of estimated future
capital expenditures for wells to which reserves have been
assigned. There is no assurance that such price and cost
assumptions will be attained and variances could be material. The
recovery and reserve estimates of the reserves provided herein are
estimates only and there is no guarantee that the estimated
reserves will be recovered. Actual reserves may be greater than or
less than the estimates provided herein.
Where amounts are expressed on a barrel of oil equivalent
("BOE") basis, natural gas volumes have been converted to oil
equivalence at six thousand cubic feet per barrel. The term BOE may
be misleading, particularly if used in isolation. A BOE conversion
ratio of six thousand cubic feet per barrel is based on an energy
equivalency conversion method primarily applicable at 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. References to oil in
this discussion include crude oil and natural gas liquids ("NGLs").
NGLs include condensate, propane, butane and ethane. References to
gas in this discussion include natural gas.
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.
Donnybrook Energy Inc.Malcolm ToddPresident and Chief Executive
Officer(604) 684-2356(604) 684-4265www.donnybrookenergy.ca
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