pen news.... How they going to get the money...
Pennant, Blackbird to spud horizontal well at Mantario
2014-02-11 08:07 ET - News Release
Also News Release (C-BBI) Blackbird Energy Inc
Mr. Garth Braun of Pennant reports
PENNANT ENERGY ANNOUNCES PLANS TO SPUD FIRST HORIZONTAL WELL AT ITS MANTARIO OIL PROJECT
Pennant Energy Inc.'s partner, Blackbird Energy Inc., plans to spud the first horizontal well on the Mantario oil project in the second quarter of 2014, subject to weather and rig availability. The well will be spudded from a surface location at 16-1-26-25W3 with a horizontal lateral length of 800 metres. The trajectory of the horizontal well has been established using proprietary high-resolution 3-D seismic and existing well control. Pennant holds a 30-per-cent operated working interest in the project. Blackbird holds a 70-per-cent operated working interest in the project.
This planned horizontal well is the follow-up to the successful A15-6-26-24W3 discovery well that encountered a 20-metre pay section and is still producing in excess of 20 barrels per day with minimal water.
Pennant and Blackbird are close to completing a detailed exploitation study for the Mantario oil project which would encompass approximately 15 hertz locations with 80-acre spacing. Downspacing to 40 acres would allow for an additional 15 hertz locations. In addition to downspacing, the companies are evaluating secondary recovery methods to improve the overall recovery factors for the pool.
The costs of the horizontal well at the Mantario oil project are expected to be less than $1-million, including drilling, completion, equipping and installation of surface facilities, and would qualify for the exceptional 2.5-per-cent royalty incentive currently received in Saskatchewan for drilling a horizontal well. Pennant estimates that its portion the costs will be approximately $250,000 and is considering alternatives for financing such costs.
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