TSX Venture Symbol: PEN
VANCOUVER, Oct. 21 /CNW/ - Pennant Energy Inc. (TSX Venture Exchange -
PEN") is pleased to announce that, pursuant to our press release of July 10,
2008, the well, Badger 100/02-17-016-18W4/00 was drilled, completed and
successfully tested the oil and gas potential of the Mannville formations on
lands earned through participation in a seismic option agreement with Drumlin
Energy Corp. The well, which is operated by a major operator in the area, was
spud on July 14 and by August 19 had been drilled, completed and production
tested. The well successfully tested both oil and gas with no appreciable
water. The lease and gas gathering facilities have been designed and
construction is scheduled to begin by the end of October. Based on test
results, stabilized production net to Pennant's working interest before
royalty, is estimated to be in the range of 30 to 40 BOEPD. Actual gross well
oil and gas production rates will be announced as the information is made
available by the operator.
Through participating in and successful completion of the seismic
program, the Company earned an undivided 25% working interest in 3 sections
(1,920 acres) of land in the area and is not subject to further promotion. The
Company has paid an undivided 25% of all costs associated with drilling,
completion, testing and tie-in of the well. Additional drilling on these lands
is currently being evaluated.
Thomas Yingling, President of Pennant Energy states "I am very pleased
and excited for the shareholders of Pennant. This new well, as it tests now,
could potentially add an additional 40 BOEPD net to Pennant's production. Our
other well drilled this spring with Highpine Oil and Gas, which is waiting on
tie-in, is capable of initial production of about 181 BOEPD (raw gas and
condensate combined) net to Pennant's working interest. Once these two wells
are tied in Pennant's working interest production capability could be as high
as approx. 220 BOEPD. This significant increase in Production combined with
the fact that we still only have 16.5 million shares outstanding and no debt
will impact our balance sheet dramatically!"
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
BOEs may be misleading, particularly 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.
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