How institutions should act ......... Unlike the CEX institutional holders who will sell for $.005, Donnycreek does a deal 100% higher since the discovery and 25% higher than the currnet share price. Meanwhile, back at the ranch here, the PP holders continue dump for pocket change. Sad. Maybe CEX management should take a lesson not to place shares with the devil next time.
stateside
Donnycreek arranges $3.5-million private placement
2012-05-24 20:31 ET - News Release
Mr. Malcolm Todd reports
DONNYCREEK ANNOUNCES $3.5 MILLION PRIVATE PLACEMENT EQUITY AND DEBENTURE FINANCING
Donnycreek Energy Inc. is undertaking a private placement of up to $3.5-million. These funds will be raised through the issuance of a combination of: (i) $1,700,000 of "flow-through" common shares of the Company within the meaning of the Income Tax Act (Canada) at a price of
.85 per FT Share; and (ii) $1,800,000 of principal amount of ten percent (10%) redeemable, convertible, unsecured debentures of the Company.
The proceeds from the FT Shares will be used to incur eligible exploration and development expenses prior to December 31, 2013 and which will be renounced as Canadian Exploration Expenses for income tax purposes to subscribers effective on or before December 31, 2012.
The Convertible Debentures shall bear interest at a rate of ten percent (10%) per annum, payable commencing July 31, 2012 and quarterly thereafter and will mature June 15, 2014. The Convertible Debentures will be convertible into common shares of the Company ("Common Shares") at the holder's option at any time prior to the Maturity Date at a conversion price of $1.00 per Common Share. The Company will have the ability to redeem the Convertible Debentures in certain circumstances where an offer or business combination is made to acquire Common Shares or if the closing price or the volume weighted average price of the Common Shares exceeds $1.40 for 21 consecutive trading days. A portion of the proceeds from the Convertible Debentures will be used for the tie-in of the Corporation's first Montney horizontal well in Kakwa, Alberta and for working capital purposes.
Fees and commissions may be payable to eligible persons in connection with the Offering.
The FT Shares and the Convertible Debentures issued pursuant to the Offering will be subject to a four month hold from the date of closing of the Offering. Completion of the Offering is expected to occur on or about June 15, 2012 and is subject to regulatory approvals, including the approval of the TSX Venture Exchange.
Kakwa Area Discovery Well
Donnycreek reported on May 3, 2012 that the first horizontal Montney well Hz 13-17-63-5 W6M ("13-17 Well"), located on its 16 section (8 net) 50% working interest contiguous land block at Kakwa, Alberta was successfully drilled and completed with a 15 stage foam frac.
Following a 96 hour frac flow back, the 13-17 Well was still cleaning up, with average gross production rates over the final 24 hours of production testing being 1,150 bbls/d condensate and 8.29 MMscf/d gas (374 bbls/d condensate and 2.69 MMscf/d; 823 boe/d net to Donnycreek, before payout including royalty share of production) against a wellhead pressure of 1,100 psi (7,584 kPa). In addition to well head condensate, gas analysis from the 13-17 Well suggests that an additional 25-35 bbls/MMscf of natural gas liquids are recoverable through typical refrigeration processing, and up to 70 bbls/MMscf if deep cut processing is available. The 13-17 Well was drilled and completed within the expected timelines and on budget.
A portion of the proceeds raised from the Offering will be deployed on Donnycreek's 16 gross section (4,140 ha/10,240 acres) land block located in the liquids-rich Kakwa Montney gas trend.
Donnycreek holds an undivided 25% working interest and 10% GORR on 75% before payout and a 50% working interest after payout in the 13-17 Well. Donnycreek holds a 50% working interest in the balance of the 16 section Kakwa Deep Basin land block. The successful drilling and completion of the 13-17 Well is a tangible step, together with significant results reported by other operators in the area in de-risking the 16 section Kakwa land block. This productivity test substantially exceeded our expectations for liquids yield and confirms the technical work that had suggested the acreage was in the core of the liquids-rich Montney trend. The 13-17 Well was completed over a 1,430 metre horizontal length in the Middle Montney, and the Company's geological interpretation indicates that comparable targets also exist across the 16 section block in the Upper Montney formation.
Surveying and applications have commenced for tie-in operations of the 13-17 Well and for a follow-up horizontal Middle Montney drilling location located at 14- 30 -63-5 W6M ("14-30") approximately 3 miles northwest of the 13-17 Well (DCK: 50%). The 14-30 follow-up well will be drilled offsetting a by-passed Montney pay well with log characteristics similar to that of the 13-17 Well. The Company currently anticipates the 13-17 Well to be tied-in by October 2012.
The Kakwa property is accessible for field operations year-round and is located within 4 miles of a major, midstream operated, natural gas and NGL processing facility.
Donnycreek has approximately 17.6 million Common Shares issued and outstanding (19.6 million fully diluted).
Donnycreek is a Calgary-based oil and natural gas production company focused on horizontal, multi-stage frac development in the Deep Basin area of west central Alberta. The Company holds working interests in 28 gross sections (7,250 ha/17,920 acres); 20 net sections (5,180 ha/12,800 acres) prospective for Montney, Bluesky, Wilrich and Falher liquid rich resource development.
Further information relating to Donnycreek is also available on its website at www.donnycreekenergy.com.
We seek Safe Harbor.