DCK Donnycreek Energy

THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES
OF AMERICA TO UNITED STATES NEWSWIRE SERVICES OR UNITED STATES PERSONS


Donnycreek Energy Inc. ("Donnycreek" or the "Company") (TSX VENTURE:DCK) reports
that its second horizontal Montney well at Kakwa, Alberta (the "14-30 Well") has
been successfully drilled to a measured depth of 4,678 metres including a
horizontal leg that remained within the target interval for the entire 1,230
metre length. The 14-30 Well (DCK: 50% working interest) was drilled to total
depth ("TD") seven days ahead of schedule and under budget, having reached TD 17
days faster than the Company's initial Montney discovery well at 13-17-63-5 W6M
(the "13-17 Well").


The 14-30 Well has been logged, cased and equipped with a packer-style
completion system that will facilitate a fourteen stage nitrogen-based frac with
an option to frac an additional prospective interval above the primary target,
also within the Montney. Contact Exploration Inc. (the "Operator") has advised
the Company that it is planning to complete and test the 14-30 Well over the
next 30 days. With successful test results, the 14-30 Well will be equipped for
production and tied-in to the Company's newly constructed jointly owned gas
transportation line by year-end. The Operator is preparing to drill another well
(DCK: 50% working interest) from the same surface location as the 14-30 Well
later this winter, and is also in the process of licensing additional locations
(DCK: 50% working interest) on our jointly owned Kakwa acreage.


As previously announced on May 3, 2012, the 13-17 Well (DCK: 25% before payout;
50% after payout working interest) was successfully drilled and completed,
demonstrating average gross production rates over the final 24 hours of
production testing of 1,150 bbl/d condensate and 8,290 mscf/d gas, being 2,532
boe/d. Construction of the well site facilities and transportation line,
connecting the 13-17 Well to Pembina's Musreau facility to the south has been
finalized. The Operator has advised the Company that a series of outages at
downstream liquids processing facilities in Alberta have caused delay in the
start-up of the 13-17 Well, as new volumes of propane and butane temporarily
cannot be accepted. The Operator is looking for alternative solutions for what
they have advised is a short-term restriction and are confident the delay will
not affect overall forecast economics that remain exceptional due to the strong
condensate market and improving gas prices. 


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. 


Further information relating to Donnycreek is also available on its website at
www.donnycreekenergy.com. 


ON BEHALF OF THE BOARD OFDONNYCREEK ENERGY INC.

Malcolm F.W. Todd, Chief Executive Officer

ADVISORY ON FORWARD-LOOKING STATEMENTS: This press release contains certain
forward-looking information and statements within the meaning of applicable
securities laws. The use of any of the words "expect", "anticipate", "continue",
"estimate", "may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking information or
statements. In particular, but without limiting the forgoing, this press release
contains statements concerning the completion and tie-in of the 14-30 Well, the
timing of the drilling of an additional well, the licensing of additional
locations on the jointly owned Kakwa acreage and the delay to the start-up of
the 13-17 Well. 


Forward-looking statements or information are based on a number of material
factors, expectations or assumptions of Donnycreek which have been used to
develop such statements and information but which may prove to be incorrect.
Although Donnycreek believes that the expectations reflected in these
forward-looking statements are reasonable, undue reliance should not be placed
on them because Donnycreek can give no assurance that they will prove to be
correct. Since forward-looking statements address future events and conditions,
by their very nature they involve inherent risks and uncertainties. In
particular, in addition to other factors and assumptions which may be identified
herein, no assurances can be given respecting: whether the Company's exploration
and development activities respecting the Kakwa prospect will be successful or
that material volumes of petroleum and natural gas reserves will be encountered,
or if encountered can be produced on a commercial basis; the ultimate size and
scope of any hydrocarbon bearing formations at Kakwa; that drilling operations
in Kakwa will be successful such that further development activities in these
areas are warranted; that Donnycreek's efforts to raise additional capital will
be successful; that Donycreek will continue to conduct its operations in a
manner consistent with past operations; results from drilling and development
activities will be consistent with past operations; the accuracy of the
estimates of Donnycreek's reserve volumes; the general stability of the economic
and political environment in which Donnycreek operates; drilling results; field
production rates and decline rates; the general continuance of current industry
conditions; the timing and cost of pipeline, storage and facility construction
and expansion and the ability of Donnycreek to secure adequate product
transportation; future commodity prices; currency, exchange and interest rates;
regulatory framework regarding royalties, taxes and environmental matters in the
jurisdictions in which Donnycreek operates; and the ability of Donnycreek to
successfully market its oil and natural gas products. 


Further, events or circumstances may cause actual results to differ materially
from those predicted as a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the control of the
Company, including, without limitation: changes in commodity prices; changes in
the demand for or supply of the Company's products; unanticipated operating
results or production declines; changes in tax or environmental laws, royalty
rates or other regulatory matters; changes in development plans of Donnycreek or
by third party operators of Donnycreek's properties, increased debt levels or
debt service requirements; inaccurate estimation of Donnycreek's oil and gas
reserve and resource volumes; limited, unfavourable or a lack of access to
capital markets; increased costs; a lack of adequate insurance coverage; the
impact of competitors; and certain other risks detailed from time-to-time in
Donnycreek's public disclosure documents. Additional information regarding some
of these risk factors may be found under "Risk Factors" in the Company's
Management's Discussion and Analysis prepared for the nine months ended April
30, 2012. The reader is cautioned not to place undue reliance on this
forward-looking information. The forward looking statements contained in this
press release are made as of the date hereof and Donnycreek undertakes no
obligations to update publicly or revise any forward looking statements or
information, whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws. 


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. 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. 


The reader is cautioned that test results are not necessarily indicative of
long-term performance or of ultimate recovery.

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