| ||Fri Nov 25, 2005|
Pennant increases Production and Land Holdings
| ||Pennant Energy Inc. ("TSX Venture Exchange -- PEN") is pleased to announce that it has been informed by the operator, Rideau Petroleums Ltd. that completion operations on three new Company wells in the Daly field are underway and/or completed. Two of the wells are part of an eight well drilling program announced by the Company in early 2004. The participation terms of these two wells call for the Company to pay 25% of the costs to drill and complete each well to earn a 22.0% working interest (W.I.) before payout (BPO) reverting to 15.0% after payout (APO). As the result of past success realized by partnering with Rideau the Company expanded the partnership through farmin which saw the drilling of a well in section 16-10-29W1. The farmin agreement called for Pennant to pay 50% of the costs to drill and complete a well in section 16 to earn 45% W.I. before payout reverting to 30% after payout in the initial well and 30% working interest in an additional seven offset drilling locations in section 16. The initial combined gross production rate from 2 of the wells was approximately 34 bopd and upon completion of service operations on the third well, the gross combined production is anticipated to be in the order of 60 bopd. |
Thomas Yingling, president of PEN stated, "We are very pleased to have been successful on all eight wells we have drilled to date in the Daly field, Manitoba. By earning 30% in the well we just drilled the Company not only has increased its daily production but has earned the right to drill seven additional wells on a pay 30% to earn 30% basis. As a Company with only 10.5 million shares outstanding, positive cash flow, zero debt and increasing production Pennant is poised to embrace significant growth. Management is also aggressively evaluating larger key projects outside of Manitoba with an emphasis on Natural gas."
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.
Mr. Thomas Yingling
President -- 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.
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