Pennant Hits Paydirt at Southern Alberta Badger Property
Pennant announced that, pursuant to its press release of July 10, 2008, the well, Badger 100/02-17-016-18W4/00 was drilled, completed and successfully tested the oil and gas potential of the Mannville formations on lands earned through participation in a seismic option agreement with Drumlin Energy Corp.
The well, which is operated by a major operator in the area, was spud on July 14 and by August 19 had been drilled, completed and production tested. The well successfully tested both oil and gas with no appreciable
water. The lease and gas gathering facilities have been designed and construction is scheduled to begin by the end of October. Based on test results, stabilized production net to Pennant's working interest before royalty, is estimated to be in the range of 30 to 40 BOEPD. Actual gross well oil and gas production rates will be announced as the information is made available by the operator.
Through participating in and successful completion of the seismic program, the Company earned an undivided 25% working interest in 3 sections (1,920 acres) of land in the area and is not subject to further promotion. The
Company has paid an undivided 25% of all costs associated with drilling, completion, testing and tie-in of the well. Additional drilling on these lands is currently being evaluated.
Thomas Yingling, President of Pennant Energy, stated, "I am very pleased and excited for the shareholders of Pennant. This new well, as it tests now, could potentially add an additional 40 BOEPD net to Pennant's production. Our other well drilled this spring with Highpine Oil and Gas, which is waiting on tie-in, is capable of initial production of about 181 BOEPD (raw gas and condensate combined) net to Pennant's working interest.
"Once these two wells are tied in Pennant's working interest production capability could be as high as approximately 220 BOEPD. This significant increase in Production combined with the fact that we still only have 16.5 million shares outstanding and no debt will impact our balance sheet dramatically."
- Pennant to Spud Second Montney HZ Well (Nov 18)
- Donnybrook Successfully Tests Flow Rates at Montney HZ Well (Oct 19)
- Pennant Completes Drilling Drumlin Pearl Well (May 13)