| ||Wed Oct 20, 2004|
Pennant Receives Initial Flow Rates from Third and Fourth Wells, Daly Field, Manitoba
| ||Pennant Energy Inc. ("TSX Venture Exchange - PEN") ("Pennant") is pleased to announce that it has been informed by its joint venture partner, Rideau Petroleums Ltd., ("Rideau") that we have received initial flow rates from the last two wells drilled in the Daly field, Manitoba. The oil amount in each of the wells has steadily increased as gelled frac water is recovered from the wells. Initial production from our third well drilled has averaged 35.4 barrels of oil per day for the last four days. Initial production from our fourth well drilled has averaged 44.0 barrels of oil per day for the last four days. Pennant is now produceing from all four wells and due to the existing strong infrastructure in place, we are selling the oil immediately allowing Pennant to capitalize on the current strong oil prices.|
As per the news release dated October 8th, 2004 we have, together with our joint venture partner Rideau, commenced drilling on our fifth well in the Daly field, Manitoba. This fifth well is offsetting the 03-33 well which is completed in the Lodgepole and Bakken and averaged 60 barrels of oil per day (bopd) during the first 16 days of production. This will be the fifth well that Pennant will have drilled with Rideau in the Daly field, Manitoba. All four of the first wells to date have been successful in hitting oil and on average are producing approximately 40 barrels of oil per day.
Thomas Yingling, president of PEN stated, "We are very pleased to have been successful on every well we have drilled to date and we look forward to drilling the fifth well in the Daly field, Manitoba. Now that Pennant is a producer and with the low risk, reserve growth potential afforded by participation in the Daly program, the company is now positioned favourably to continue evaluation of other drilling and/or acquisition opportunities. Pennant is well funded and this new cash flow will ensure that Pennant can proceed to evaluate and participate in other projects under review."
For further info on this project or any other company information please visit our web site at www.pennantenergy.com or call us at 604-689-1799.
ON BEHALF OF THE BOARD OF DIRECTORS OF
PENNANT ENERGY INC.
Mr. Thomas Yingling
President - CEO
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 Oct 21, 2004, Pennant Enters into Agreement to Drill Nisku Reef, Meekwap Field Alberta
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