TSX Venture Symbol: PEN
VANCOUVER, June 26 /CNW/ - Pennant Energy Inc. (the "Company")
(TSX.V-PEN) is pleased to announce that pursuant to our press release of June
9, 2008, the operator, Highpine Oil & Gas Limited, (TSE - HPX) has provided
the Company with the initial production test results from the well "Highpine
et al Pembina 102/16-29-048-08W5/00". Though delayed by inclement weather and
poor surface lease conditions, the well was completed and production test
operations were successfully carried out. The well was shut-in on May 30 and
the reservoir pressure build-up was monitored until June 13. We are very
pleased to announce that the well flowed and sustained the maximum allowable
restricted rate of 68 thousand cubic meters per day (E3m3/day) (or
2.45 million cubic feet per day (MMcf/day)) throughout the 7 hour flow test
period, regulated by the EUB for sour gas wells in this area. The well is
capable of producing in excess of the test rates but was restricted because it
has not yet been tied into the sales pipeline. Based on analysis of the test
data and by analogy to the West Energy well at 14-28-48-8W5, the well is
capable of an initial raw gas production rate in the order of 3.5 MMcf/day.
The well also produced condensate (light oil) at an average oil/gas ratio of
50 bbls/MMcf of produced gas or 175 bbls/day at a gas rate of 3.5 MMcf/day.
The combined raw gas and condensate are equivalent to a rate of 758 BOEPD. The
results of the production and pressure build up analysis are currently being
reviewed by all partners in the well and future operation plans will be
announced as the information is made available. Highpine has formally turned
over operation of the well to Baytex Energy Trust (TSE - BTE.UN) who will be
directing the tie-in and on going operation of the well. The Company is
participating as to a 24% interest in the well.
The Pembina Field is a large, mature oil and gas field centered
approximately 65 miles southwest of the City of Edmonton, Alberta. Based on 3D
seismic data, the reservoir, encountered in drilling this well is
approximately 140 acres in area with an average potential pay interval of 25
feet. For further background on the project please refer to our press releases
dated March 13, 2008.
Thomas Yingling, president of PEN stated, "We are very pleased with these
results. With oil and gas prices near all time record highs and the fact that
Pennant still only has 16.5 million shares out and no debt, success in this
Pembina well should significantly impact our balance sheet. Pennant is also
currently conducting due diligence on several other oil and gas projects, all
located within Western Canada."
ON BEHALF OF THE BOARD OF DIRECTORS OF
PENNANT ENERGY INC.
Mr. Thomas Yingling
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. The BOE equivalent presented in this statement is based on a
ratio of 6:1 Mcf/BOE. This method of conversion is primarily applicable at the
burner tip and does not represent 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.
For further information:
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