Pennant Updates Montney Activity

Pennant Energy on Tuesday provided the following update on our Bigstone, highly liquids rich natural gas resource project.

Operational Highlights:

-- The well 13-33-060-22W5 has been drilled to total measured depth of 5,336 meters with a 2,590 meter horizontal length;

-- Surface production facilities located in Lsd 3-29-060-22W5 and the 1.6 mile, 8 inch pipeline to the Delphi operated gas gathering system tie-in point has been completed;

-- Production from our wells is anticipated to commence mid to late April upon completion of certain operations by Delphi at the Lsd 1-19 tie-in point; and

-- Fourth Montney extended reach horizontal well location surveyed and anticipated to spud in June, 2012.

Further to our press release of February 2012, and pursuant to the "Cross-Conveyed Pooling and Participation Agreement" (the "Agreement") covering the pooling of the P&NG, Triassic Montney formation rights held by Pennant and partners in section 28-060-22W5 with those held jointly by Trilogy Energy and TAQA North in the adjacent section 33-060-22W5, the initial extended reach, horizontal Joint Well on the Pooled Lands was spud on March 4 and reached total depth on April 2, 2012. The well 13-33-060-22W5 was drilled from its surface location at 4-28-060-22W5 to a total measured depth of 5,336 meters with a 2,590 meter horizontal length. In accordance with the Agreement, Trilogy will assume the role of Operator during the completion phase of operations. The well is currently being conditioned to run a liner and packer assembly in preparation for conducting a multi-stage (up to a 27 stage) fracture program. Completion operations are scheduled to be underway as soon as possible. Pennant holds an undivided 12.5% pooled interest in the Pooled Lands and participated as to a 12.5% working interest in the drilling of the 13-33-060-22W5 well.

The 13-33-060-22W5 well was drilled through the Montney at excellent penetration rates with strong gas shows. The well is located approximately 0.5 miles directly east and runs parallel to our recently drilled and completed extended reach horizontal well, 15-32-60-22W5 (25%WI). The 15-32-60-22W5 well was also drilled at excellent penetration rates with strong gas shows.

The installation of surface facilities, including 3 phase separators, line heaters, tanks, measurement and monitoring equipment and construction of a 1.6 mile, 8 inch pipeline to tie-in to the Delphi operated gas gathering system has been completed. (Pennant holds a 31.25%WI in the system) The site of the facilities is the same surface location used to drill the 14-29 and 15-32 wells, 03-29-060-22W5 and both will be produced through the facilities. The pipeline will carry gas and liquids from our facilities to the Delphi system tie-in point in Lsd 01-19-060-22W5. Production from our wells will be ready to begin as soon as Delphi completes certain construction and start up operations at the 1-19 tie-in point, anticipated to be mid to late April. The pipeline right of way to tie-in the 13-33-060-22W5 well has been surveyed and laying the line is tentatively planned to begin in June, contingent upon surface access conditions.

Donnybrook has informed Pennant that it has surveyed a number of new drilling locations and is planning to drill the next extended reach horizontal well on one of the locations on the west side of our Bigstone acreage block (25% W.I.) in June, 2012.

Thomas Yingling President of Pennant Energy Inc. stated, "The Company is pleased to announce the successful drilling of out third well and completion of the pipeline. Pennant currently has cash flow from its existing wells in Alberta and Manitoba. This cash flow will increase dramatically once production is on stream from the first two Bigstone wells. If test results warrant it, then our third well will also be tied into our pipeline and will also add to our cash flow significantly."


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