Mr. Thomas Yingling reports
PENNANT TO DRILL OFF SET WELL
Pennant Energy Inc. will participate as to an undivided 50-per-centworking interest in a second well in the Watts (Pearl) project area. Thewell location, 102/07-16-030-16W4/00, is on land acquired at theFebruary 10, 2010 Alberta Crown land sale with joint venture partnerDrumlin Energy Corp. (Drumlin). The well is an offset to the successfulOstracod formation gas well, Pearl 100/07-09-030-16W4/0, drilled andcompleted pursuant to the earning terms of the Farmin Agreement (the"Agreement") with Drumlin announced in our February 2, 2010 pressrelease. The 100-07-09 well has been producing since mid August,gradually ramped up from approximately 500 thousand cubic feet per day(mcf/day) to the current rate of about one million cubic feet per day(Mmcf/day). The 102/07-16 location is targeting similar performance. Theeconomics of drilling the 102/07-16, though natural gas prices aresuppressed, was made possible by prior capital investment inconstruction of the gas-gathering pipeline to the project area necessaryto tie-in the 100/07-09 well.
The Company also announces it has arranged a non-brokered privateplacement to raise up to $297,000. Up to $249,750 of the privateplacement will be raised on a flow-through basis as to a share only atthe price of
.135. Up to $47,250 of the private placement will beraised on a non flow-through basis at a price of
.135 per unit withone-half non-transferable share purchase warrant. Each two sharepurchase warrants will entitle the holder to purchase one additional nonflow through common share of the Company at a price of
.20 per sharefor a period of one year.
The proceeds of the private placement will be used to drill an off setwell to the Company's first Watts well and general working capital.
A finder's fee may be paid pursuant to the financing, in accordance with the policies of the TSX Venture Exchange.
We seek Safe Harbor.