| | | Tue Apr 7, 2009
Pennant flows Badger Well Successfully
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| | Pennant Energy Inc. (the "Company") (TSX Venture Exchange - PEN") is pleased to announce that, installation of lease facilities and gas gathering line for production from the well, Badger 100/02-17-016-18W4/0 was completed this past winter and began producing to market at rates consistent to those quoted in our October 21, 2008 press release. The well has been producing approximately 160 BOEPD in total or 40 BOEPD net to the Company. The Company holds a 25% working interest in the well and P&NG rights below the base of the Belly River in the total section. Additional spacing is available for offset drilling. The Company earned the option to joint venture in the drilling of the Badger 02-17 well through participation in a seismic program carried out during the winter of 2007-2008. Interpretation of that seismic data, which covers the Badger area, had identified a secondary target to the Badger 2-17 location. Drilling of the secondary seismic target which is offset to the Badger 2-17 well, will be contingent upon the stabilized production performance of the 2-17 well. The Badger well performance and future development plans for the property will be announced as production data becomes public and information is made available by the operator.
The Company currently holds a 25% interest in a total of 2 sections of land with an option to participate in future exploration and development activities within an area of mutual interest in the Badger area.
Thomas Yingling, President of Pennant Energy states "I am very pleased to announce success at our first Badger well. This new well should provide Pennant with stable cash flow. Now that this well has been tied in, and producing so well, we can properly assess the potential of the Badger Project. We are currently reviewing additional offset drilling opportunities. With only 20.5 million shares out, no debt, and cash in the bank this new addition of cash flow will impact Pennants balance sheet dramatically. The Company is also currently evaluating additional oil and gas projects."
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.
"Tom Yingling"
Mr. Tom Yingling
President & CEO
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.
BOEs may be misleading, particularily 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. |
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