Pemberton Inks LOI to Acquire 50% in Panny Well, Plans Horizontal Drilling
Pemberton Energy Ltd. is pleased to announce that it has signed a letter of intent and is finalizing contracts to acquire an additional 50% ownership in the Panny 8-25-095-W5M well in exchange for $50,000.00 and 8,000,000 of PBT common shares. Pemberton currently holds 25% ownership and has held operatorship of this well for 7 years. This acquisition is subject to regulatory approval.
Management has reviewed the economics of this well and feels that this additional percentage ownership is a great acquisition at this time. The Company has designed a high pressure stimulus program using chemicals to break down paraffin wax buildup that causes decline in production. This program will provide much needed additional revenue during the summer months and after freeze up Pemberton is preparing for the horizontal drill program with staged fracing, similar to programs that were done by majors in the area, which saw their production increase by 700%-1000%.
Pemberton currently holds additional 1280 acres less then one kilometer from Panny well location, and will be doing feasibility studies and seismic interpretation for review of potential horizontal drill programs on these two sections. Energy Resources Conservation Board allows four oil wells per section, allowing Pemberton the opportunity of potential 8 drill targets in the Keg River Formation, which is a predominate producing zone in the area produced by the majors.
Pemberton Energy Ltd's principal business is the acquisition, exploration and development of petroleum properties. The company continues to focus on its primary corporate objective: the creation of value for shareholders by identifying oil and gas accumulations with relatively low geological risk but with substantial reserve potential.
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- Pemberton Acquires Additional Saskatchewan Mineral Rights (Feb 19)