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News
14.05.2010
Pennant successfully drills Pearl Well
Pennant successfully drills Pearl Well
May 13, 2010 - Pennant Energy Inc. (the “Company”) (TSX Venture Exchange – PEN”) is pleased to announce that, pursuant to our press release of February 2, 2010, the farmin well “Drumlin Pearl 7-9-30-16W4” has been drilled, completed and production tested. Information on drilling and testing was held “tight hole” or confidential to date, due to forthcoming Alberta Crown land sales which included open land parcels (posted) of interest offsetting the Pearl well. The Company can reveal that the well was successful in producing hydrocarbons during the flow test of a completed target formation. Further information regarding well operations will be provided, as the operator makes the information public.
The terms of the Farmin Agreement called for the Company to pay 75% of the costs to drill and complete the Test well and if required, 50% of equipping and tie-in costs. By satisfying the terms of the Agreement, the Company has earned a reversionary working interest of 50% BPO (before pay out) reverting to 25% APO (after pay out) of a drilling and completion capital cost multiple, subject to Crown royalties in the Drumlin Pearl 7-9 well. Pennant does not revert to 25% APO until a total of 300% of costs is returned to Pennant. In addition, the Company earned an undivided 25% working interest in all PNG rights to the base of the deepest formation evaluated on the Farmout Lands, which covered 1 section with the option to participate as to a 50% Working Interest in future land acquisitions, exploration and development within an area of mutual interest (AMI) for a period of 1 year from the effective date of the Agreement.
The Pearl well will qualify for the Alberta New Well Incentive Program, which provides for a maximum 5% Crown royalty rate during the first year of production. In addition, upon application the Company will qualify for the $200-per-meter-drilled, Crown royalty drilling credit.
Thomas Yingling, President of Pennant Energy states “I am pleased to announce success at the first well drilled on our Pearl project. The Company is currently evaluating the next drill location. I am very proud of Pennants management team, as this is the fifth successful well that the Pennant team has drilled in a row. Once this well is tied in and producing it will add significantly to our daily production. This increase in production, combined with the fact that we still only have 23,432,000 shares outstanding and no debt, should have a dramatic impact to the Company. In addition to evaluating off set drill locations with our existing projects we are also evaluating additional new projects.”
For further information on any of our projects please feel free to contact the company at 604-689-1799 or visit our web site at www.pennantenergy.com
ON BEHALF OF THE BOARD OF DIRECTORS OF
PENNANT ENERGY INC.
_”Tom Yingling”______________________
Mr. Tom Yingling
President
This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
BOEs may be misleading, particularily when used in isolation. A BOE conversion ratio of 6Mcf: 1 bbl is based on energy equivalency conversion method primarily applicable at the burner tip and does not present a value equivalency at the wellhead.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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May 13, 2010 - Pennant Energy Inc. (the “Company”) (TSX Venture Exchange – PEN”) is pleased to announce that, pursuant to our press release of February 2, 2010, the farmin well “Drumlin Pearl 7-9-30-16W4” has been drilled, completed and production tested. Information on drilling and testing was held “tight hole” or confidential to date, due to forthcoming Alberta Crown land sales which included open land parcels (posted) of interest offsetting the Pearl well. The Company can reveal that the well was successful in producing hydrocarbons during the flow test of a completed target formation. Further information regarding well operations will be provided, as the operator makes the information public.
The terms of the Farmin Agreement called for the Company to pay 75% of the costs to drill and complete the Test well and if required, 50% of equipping and tie-in costs. By satisfying the terms of the Agreement, the Company has earned a reversionary working interest of 50% BPO (before pay out) reverting to 25% APO (after pay out) of a drilling and completion capital cost multiple, subject to Crown royalties in the Drumlin Pearl 7-9 well. Pennant does not revert to 25% APO until a total of 300% of costs is returned to Pennant. In addition, the Company earned an undivided 25% working interest in all PNG rights to the base of the deepest formation evaluated on the Farmout Lands, which covered 1 section with the option to participate as to a 50% Working Interest in future land acquisitions, exploration and development within an area of mutual interest (AMI) for a period of 1 year from the effective date of the Agreement.
The Pearl well will qualify for the Alberta New Well Incentive Program, which provides for a maximum 5% Crown royalty rate during the first year of production. In addition, upon application the Company will qualify for the $200-per-meter-drilled, Crown royalty drilling credit.
Thomas Yingling, President of Pennant Energy states “I am pleased to announce success at the first well drilled on our Pearl project. The Company is currently evaluating the next drill location. I am very proud of Pennants management team, as this is the fifth successful well that the Pennant team has drilled in a row. Once this well is tied in and producing it will add significantly to our daily production. This increase in production, combined with the fact that we still only have 23,432,000 shares outstanding and no debt, should have a dramatic impact to the Company. In addition to evaluating off set drill locations with our existing projects we are also evaluating additional new projects.”
For further information on any of our projects please feel free to contact the company at 604-689-1799 or visit our web site at www.pennantenergy.com
ON BEHALF OF THE BOARD OF DIRECTORS OF
PENNANT ENERGY INC.
_”Tom Yingling”______________________
Mr. Tom Yingling
President
This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
BOEs may be misleading, particularily when used in isolation. A BOE conversion ratio of 6Mcf: 1 bbl is based on energy equivalency conversion method primarily applicable at the burner tip and does not present a value equivalency at the wellhead.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
NEWSLETTER REGISTRIERUNG:
Aktuelle Pressemeldungen dieses Unternehmens direkt in Ihr Postfach:
<a href="http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA7080491011">http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA7080491011</a>
Mitteilung übermittelt durch IRW-Press.com. Für den Inhalt ist der Aussender
verantwortlich.
Kostenloser Abdruck mit Quellenangabe erlaubt.