OT PEN great news out - only 16 mil s/oPennant's Pembina well flow tests at highest rate
2008-06-10 10:03 ET - News Release
Mr. Thomas Yingling reports:
PENNANT FLOW TESTS WELL AT MAXIMUM ALLOWABLE RATES
Pennant Energy Inc. (the "Company") (TSX.V-PEN) is pleased to announce that the Company has been informed by the operator, Highpine Oil & Gas Limited, (TSE - HPX) that initial completion and production testing operations of the well "Highpine et al Pembina 102/16-29-048-08W5/00" have been completed. The operations took longer than the initially scheduled time due to the wet weather and poor surface lease conditions; however, we are very pleased to announce that the well was successfully flow tested at the maximum allowable rate during the 4 hour test period regulated by the EUB for sour gas wells in this area and the well has been shut in to monitor pressure build-up. The pressure build up monitoring period is scheduled to take several days, contingent upon weather related lease accessibility. Analysis of the production and pressure build up data will be carried out subsequent to gathering final pressure build-up data. The results of the interpretation and future operation plans will be announced as the information is made available by Highpine. The Company is participating as to a 24% interest in the well. The cost of the completion and testing operations is estimated to be $153,000 net to the Company.
The Pembina Field is a large, mature oil and gas field centered approximately 65 miles southwest of the City of Edmonton, Alberta. Individual wells in each of the neighboring pools have produced at rates of in excess of 1000 barrels of oil per day (bopd) and 3 million cubic feet per day (Mmcfd). Based on 3D seismic data, the reservoir, encountered in drilling this well is approximately 140 acres in area with an average potential pay interval of 25 feet. For further background on the project please refer to our press releases dated March 13, 2008.
Thomas Yingling, president of PEN stated, "We are very encouraged by the fact that the well flow tested at the maximum allowable rate. With oil and gas prices near all time record highs and the fact that Pennant still only has 16.5 million shares out and no debt, success in this Pembina well could significantly impact our balance sheet. Pennant is also currently conducting due diligence on several other oil and gas projects, all located within Western Canada."
For further information on any of our projects please feel free to contact the company at 604-689- 1799 or to view several brief videos on oil and gas exploration, please visit our web site at
https://www.pennantenergy.com
ON BEHALF OF THE BOARD OF DIRECTORS OF PENNANT ENERGY INC.
Mr. Tom Yingling
President
This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results
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