Donnycreek Energy Inc. (Toronto Venture: DCK) reports that its natural gas production has resumed at its 50% working interest Kakwa property in west central Alberta following an 18-day pipeline maintenance shut down by TransCanada. Total net production to Donnycreek's interest is currently approximately 2,000 boe per day of which approximately 48% is condensate.

Hydraulic fracturing stimulation operations are expected to take place over the next four weeks on three previously drilled horizontal Montney wells awaiting completion. Two of these wells drilled in the previous quarter are scheduled to be on production by calendar year-end 2014 and the third well is scheduled for production startup in calendar Q2 2015 following expansion of the gas plant and gas gathering infrastructure.

Drilling operations are continuing with two drilling rigs, one drilling a horizontal Montney development well (50% WI) and the second drilling a horizontal Montney delineation well (50% WI) on the company's land block west of the existing Kakwa development area. These wells bring the total number of wells on the Kakwa land block to 16 wells (net 7.48).

Litigation Update

In August 2013, a proposed class action lawsuit was filed in the Alberta Court of Queen's Bench against Donnycreek, Donnybrook Energy Inc., and certain of their respective directors and officers. The action contains various allegations relating to the plan of arrangement involving Donnycreek and Donnybrook completed in November 2011, the transfer of certain assets from Donnybrook to Donnycreek, a related private placement and other related transactions. As part of its strategy to bring this matter to a final resolution in an expeditious manner, the company intends to agree to certify the lawsuit as a class proceeding and to proceed directly to trial rather than attempting to determine the matter on a summary basis. The company firmly believes that the allegations in the class action are without merit and the company will be vigorously defending the lawsuit.