Pennant to Drill Four More Wells
|Tuesday, October 12, 2004
Pennant Energy has elected to continue participation with joint venture partner and operator, Rideau Petroleums Ltd. in the Daly Field, Manitoba oil well development drilling program. Pennant has agreed to participate in the drilling of up to four additional wells under the same terms and conditions as the original program which saw the successful drilling and completion of four oil wells. Pennant will contribute 25% of the costs to drill, complete and equip the wells to earn a 22.5% working interest before payout, reverting to 15% working interest after payout. The first of four option wells will begin drilling during the week of October 11, 2004. The well location, 13-28-029-09W1, is targeting both the Lodgepole and Bakken formations and is a direct, southwest offset to a well recently completed (October) by Rideau at 03-33-029-09W 1. The 03-33 well is completed in the Lodgepole and Bakken and averaged 60 barrels of oil per day (bopd) during the first 16 days of production. The locations of the remaining three wells have yet to be finalized.
The initial four wells have all been drilled and completed. As announced in September, two wells were placed on pump and have been producing for approximately 1 month. Of the remaining two wells, one has just been placed on pump and is recovering completion fluids while lease preparation for pump installation on the last of the wells began today.
Thomas Yingling, president of PEN stated, "We are pleased with the success we have realized in our first joint venture with Rideau. We believe continued association with Rideau in the development of the Daly Field will provide Pennant with low risk, development drilling opportunities and enable establishment of a stable reserve base and cash flow for the company. With the low risk, reserve growth potential afforded by participation in the Daly program, the company will be positioned favourably to continue evaluation of other drilling and/or acquisition opportunities, so important in these times of volatile commodity prices. Pennant is well funded and this new cash flow will ensure that Pennant can proceed to drill its Kabob, Alberta property as well as other projects under review."