| ||Wed Feb 29, 2012|
Pennant Announces Pooling Agreement with Trilogy Energy and Taqa North on its Montney Lands and Third Montney Horizontal Well Spud at Bigstone
| ||Vancouver, B.C., Feb 29, 2012 -- Thomas Yingling, President of Pennant Energy Inc. (TSX.V-PEN) is pleased to announce it has reached an agreement with its partners to pool a single section of the lands at Bigstone in which Pennant has a 25% working interest, with a single section held jointly by Trilogy Energy Corp. ("Trilogy") and TAQA North Ltd. ("TAQA"). The purpose of the pooling is to allow for the joint lands to be developed utilizing extended reach horizontal wells. After pooling, Pennant will participate for its pooled 12.5% working interest in all further operations on the joint lands. Prior to the pooling, Pennant had earned a 25% interest in 7 sections (4480 acres) at Bigstone with a net interest of 1.75 Sections (1120 acres). After the pooling Pennant will have an interest in 8 sections (5120 acres) and a net interest of 1.75 sections (1120 acres).|
The first well to be drilled on the Joint lands will be from a surface location at 4-28-60-22W5 and the plan is to drill horizontally 2960m to a bottom hole location at 13-33-60-22W5. The well is expected to commence drilling operations on March 2nd.
Thomas Yingling President of Pennant Energy Inc. stated, "Although Pennant's acreage position and net interest at Bigstone will remain unchanged, this pooling agreement allows for all of the lands in the Bigstone property to be developed using extended reach horizontal wells. Development of the Bigstone property with the extended reach laterals is expected to be much more efficient and economical for all parties. We are looking forward to working with Trilogy and TAQA on the joint lands and the drilling of the 13-33 well"
To view a brief video detailing the horizontal frac process please visit our web site at www.pennantenergy.com and for further information on any of our projects please feel free to contact the company at 604-689-1799.
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 tobe 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.
FORWARD-LOOKING STATEMENTS Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including statements regarding the spud of the Bigstone 13-33 well and horizontal length, the timing of tie-in, anticipated initial production, drilling plans for the Company's Bigstone acreage, potential drilling locations, the drilling of additional wells and the construction of a gathering system at Bigstone and projected corporate Q2 2012 production rate. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Pennant's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Pennant believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our management's discussion and analysis, Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Pennant does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids ("NGLs"). NGLs include condensate, propane, butane and ethane. References to gas in this discussion include natural gas. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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