CALGARY, ALBERTA--(Marketwired - Feb 10, 2014) - Donnycreek Energy Inc. ("Donnycreek" or the "Company") (TSX VENTURE:DCK) provides operations update and production guidance for the 2014 calendar year.
Wapiti
Donnycreek's Hz 1-26-64-8 W6M well (the "1-26 Well") has reached total measured depth of approximately 5,330 metres including a lateral length of approximately 1,600 metres in the middle Montney. Completion and testing operations are scheduled to begin in mid February 2014.
Kakwa
Five wells are currently producing into the Company's 50% working interest central gas compression and condensate stabilization facility. The 14-2-63-6 W6M well (23.75% working interest) producing from the upper Montney flows into a third party processing system. The Company's recently completed middle Montney well at 16-17-63-5 W6M (the "16-17 Well") is currently being equipped and tied-in and is expected to be on-stream in mid February 2014. The Company is currently drilling the Hz 102/14 - 30 - 63-5 W6M (the "02/14-30 Well") targeting the upper Montney. The 02/14-30 Well is the second of the 8 horizontal Montney wells planned to be drilled at Kakwa in calendar 2014.
Credit Facility
Donnycreek is establishing an initial credit facility in the amount of $15 million with Alberta Treasury Branches.
Calendar 2014 Guidance
In calendar 2014, Donnycreek anticipates participating in 8 wells at Kakwa (average 50% working interest) and 2 wells at Wapiti (75% working interest). Total net capital expenditures are estimated to be $52.2 million; of which $49.1 million is for drilling and completions and $3.1 million is for equip and tie-in. The calendar 2014 program will be funded through cash on hand, cash flow and possibly debt. Donnycreek's current net production is approximately 1,400 boe/day (49% condensate; 51% natural gas). Production for calendar 2014 is estimated to average 1,500 boe/d with an anticipated exit rate of approximately 2,500 boe/d (49% condensate; 51% natural gas). Donnycreek forecasts cash flow from operations of approximately $37.5 million in calendar 2014.