Pennant Signs Letter of Intent

    TSX Venture Symbol: PEN

    VANCOUVER, Feb. 21 /CNW/ - Pennant Energy Inc. (TSX Venture Exchange -
PEN") is pleased to announce that it has signed a Letter of Intent with Silver
Spirits Inc. (Silver Spirits), a private Alberta company, to undertake certain
exploration activities and analysis of Silver Spirits lands (the "Lands")
located in the Fort Saskatchewan Field area, east of the City of Edmonton in
Township 54 Range 22W4. The Fort Saskatchewan Field produces mainly natural
gas from various formations including the Mannville intervals, Ellerslie and
Ostracod and shallower Viking reservoirs. Pennant will undertake to analyze
all available data covering the Silver Spirits land and carry out additional
geochemical surveys at its sole expense, with the objective of identifying
drilling locations for natural gas and/or oil potential to the base of the
Mannville formation depth. Silver Spirits holds 2 sections of land in this
relatively undeveloped area of the field; one section offsets an abandoned
Ellerslie formation gas well which produced in excess of 1 billion cubic feet
of gas. Pennant, by undertaking the work commitment will earn the option to
enter into a formal Farmout Agreement (the "Agreement") to drill a test well
on the Lands. The terms of the Agreement will call for Pennant to pay for 100%
of the costs to drill and case or abandon the test well, to earn a before
payout (BPO) working interest (WI) of 100% in the drilling spacing unit
subject to a 7.0% gross overriding royalty (GORR) on oil and/or gas and 65% WI
in the balance of the acreage; at payout of the test well, Silver Spirits will
have the option to convert the GORR to a 35% WI.
    Southern Alberta Project Update: as noted in our press release of January
18, 2008, our joint venture partner and operator of the project, Drumlin
Energy Corp. informed Pennant that the shooting of the 3D Seismic Survey was
completed and processing was underway. The interpretation of the data is
progressing and is expected to be finished soon. The objective of the seismic
program is to identify high quality, natural gas drilling targets in Mannville
channel reservoirs. The program, located in Southern Alberta, covered
approximately 4.5 square miles. Through participating in the shooting and
processing of the 3D seismic survey Pennant will earn an undivided 25%
interest in 3 sections (1,920 acres) of land in the area. Pennant is not
subject to further promotion and will have the option to participate on a pro
rata basis in drilling and development activities thereafter. contact the
company at 604-689-1799 or visit our web site at


    "Jim Britton"
    Mr. Jim Britton
    P. Geol. - Director

    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 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

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