| ||Thu Jun 26, 2008|
Pennant and Highpine - Pembina well Tests capable of 758 BOEPD
| ||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."
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.
"Thomas Yingling" .
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.
You can view the Next News Releases item: Thu Jul 10, 2008, Pennant to Drill on Badger Property, Southern Alberta
You can view the Previous News Releases item: Mon Jun 9, 2008, Pennant Flow Tests Well at Maximum Allowable Rates
You can return to the main News Releases page, or press the Back button on your browser.