Pennant to Drill Second Montney Horizontal Well at Bigstone and Accelerates Development Plans
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/18/11 -- Thomas Yingling, President of Pennant Energy Inc. (TSX VENTURE: PEN) announces, pursuant to our October 20, 2011 press release, that it is pleased to provide an operational update on the Company's activities at Bigstone, Alberta. The Company is scheduled to spud its second Bigstone Montney horizontal well in the first week of December. The Donnybrook operated DEI Bigstone Hz 15-32-60-22 W5M well (25% working interest to Pennant) will be drilled from the same drilling pad as the Company's Bigstone Hz 14-29 discovery well (37.5% BPO/25% APO working interest) which tested in the last 24 hours of a 4 day production test at a rate of approximately 4.3 million cubic feet per day (mmcf/day) of natural gas and 295 barrels per day (bbls/day) of condensate from a 1,254 metre horizontal section; 1,011 barrels of oil equivalent per day (boe/day). The DEI Bigstone Hz 15-32 well has a planned 2,500 metre +/- horizontal section.
A third Donnybrook operated Bigstone Montney horizontal well (25% working interest to Pennant) is also planned to be spud in Q1 2012. There are several potential locations for the third well and discussions are ongoing with partners to determine which location will be selected. The Company is joint ventured on 7 sections at Bigstone, which would support an equivalent of 14-28 horizontal wells depending upon the lateral length of each horizontal leg.
In addition, discussions are underway with area industry partners to construct a gathering system during Q1 2012. It is anticipated that all production from Pennant's Bigstone project area will be on-stream during April 2012. Pennant expects to be able to fund the drilling of the next two wells and planned tie in from funds to be received from the recent unit and flow through share offering that will be closing prior to the end of November.
Thomas Yingling, President of Pennant Energy Inc., stated, 'the Bigstone discovery well clearly exceeded our expectations and the development plans for the area are being accelerated. We are looking forward to developing this exciting project with our partners. Once these first Bigstone wells are on stream it will add to our current production dramatically.'
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.
Mr. Thomas Yingling, President
Oil Equivalency Conversion (BOE)
Where amounts are expressed on a barrel of oil equivalent ('BOE') basis, natural gas volumes have been converted to BOE at a ratio of 6,000 cubic feet of natural gas to one barrel of oil equivalent (6 Mcf = 1 BOE). The conversion ratio is based upon an energy equivalent conversion method, primarily applicable at the burner tip and does not represent value equivalence at the wellhead. BOE values may be misleading, particularly if used in isolation. Furthermore, 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.
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 15-32 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Pennant Energy Inc.
Mr. Thomas Yingling
President
(604) 689-1799
(604) 689-8199 (FAX)
tom@pennantenergy.com
www.pennantenergy.com
