Donnybrook Farms-Out Alberta Lands to Cequence
Donnybrook reported that it has finalized an agreement with Cequence whereby Cequence will cash equalize into certain lands totaling 5 sections that Donnybrook currently holds 100% at Simonette, Alberta.
In return, Cequence, as operator, will commit to the drilling of a Test Well on a nearby jointly held section (50% Donnybrook/50% Cequence) with Cequence paying 70% of the drill and complete costs to earn a 50% working interest at tie-in point. Donnybrook will pay 30% of the drill and complete cost to retain a 50% working interest in the subject well which is expected to spud on or around August 1, 2011.
Initially, the Test Well will be drilled as a strat test into the Montney formation and if successful it will then be drilled horizontally for approximately 1,400 meters.
This well will be the first of three Montney horizontal multi-stage frac locations contemplated to be drilled between August and December of 2011 on Donnybrook's 50% lands at Simonette.
At Bigstone, Alberta, Donnybrook, as operator, has received the license for the drilling of its Montney horizontal well (25% BPO/50% APO) with a horizontal length of approximately 1,400 meters. Donnybrook has begun well site construction and the well is expected to spud early in the third quarter of 2011. The well is located within five miles of a recently announced liquids rich natural gas two mile horizontal Montney well that after clean-up reportedly flowed on test over the last day at an average rate of 13.1 MMCF of natural gas and 650 barrels of crude oil and NGLs per day (2,800 boe per day). Donnybrook and its partners hold 7 contiguous sections of Triassic Montney P&NG rights at Bigstone.
The wet spring weather in the area of Donnybrook's operations has delayed the Company's ability to access the DEI Hz 13-27 well at Resthaven which was drilled in the first quarter of 2011 and completed in April. The DEI Hz 13-27 well in which Donnybrook has a 70% working interest is still pending tie-in to the Conoco Phillips plant which will occur as soon as conditions permit. Once the well is tied-in it will be flowed back for an in-line production test. It is reasonable to expect that this may occur by mid July 2011.