| | | Fri Jun 26, 2009
Pennant Announces Spud of Ferrier Well
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| | Pennant Energy Inc. (the "Company") (TSX Venture Exchange - PEN") is pleased to announce that, pursuant to our press of May 27, 2009, the drilling of the gas well test on farm-in land in the Ferrier area of central Alberta commenced on June 22, 2009. The Company joint ventured with a private Alberta company (JV Partner) to farm-in on the Ferrier gas well test. The terms of the joint venture agreement (the Agreement) call for the Company to pay 30% of the JV Partner's share of costs to drill, test, complete and tie-in or abandon the well to earn an undivided 25% working interest in the well, subject to a non-convertible gross overriding royalty on the farmout interest. The earned interest covers 1 section of land with the option to participate in future exploration and development within an area of mutual interest (AMI) for a period of 1 year from the effective date of the Agreement.
The Ferrier well will qualify for the Alberta New Well Incentive Program which provides for a maximum 5% Crown royalty rate during the first full year of production. The program is in effect for all new wells drilled which begin producing oil or natural gas between April 1, 2009 and March 31, 2010. In addition, upon application the Company may qualify for the $200-per-meter drilled (net to Company) Crown royalty credit which may reduce the Alberta Crown royalty on current Company production by up to 50% for a period of up to 1 year.
To view daily pictures of the drill program please visit the Companies web site at www.pennantenergy.com We will be adding pictures and videos on a daily basis.
ON BEHALF OF THE BOARD OF DIRECTORS OF
PENNANT ENERGY INC.
"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.
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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| | You can view the Next News Releases item: Thu Sep 17, 2009, Ferrier Well Successfully drilled and producing
You can view the Previous News Releases item: Wed May 27, 2009, Pennant Announces New JV Drilling Prospect
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