NEWS Montney Horizontal Well TD'd January 10, 2012 08:00 ET
Pennant's First "Extended Reach" Montney Horizontal Well TD'd
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2012) - Thomas Yingling, President of Pennant Energy Inc. (TSX VENTURE:PEN) announces that Pennant has been advised by the operator, Donnybrook Energy Inc., that the DEI Bigstone Hz 15-32-60-22 W5M "extended reach" horizontal well (25% working interest to Pennant) has been drilled to total depth ("TD") and the completion string has been installed in preparation for fracing operations, scheduled for January 15, 2012. The well was drilled directionally to a total measured depth of 5,512 meters from the 3-29-60-2W5 surface location and included an extended reach lateral through the Montney Formation measuring 2,744 meters at the 15-32-60-22W5 bottom-hole terminus. The completion string is configured to conduct a continuous, multi stage fracture stimulation consisting of up to 24 stages over the length of the horizontal lateral. The completion operations including the frac procedure, production test and preparing the well in readiness for tie-in to sales are estimated to be accomplished by early to mid February, 2012.
The 15-32 well horizontal section is over twice as long (close to 1,500 meters longer) than Pennant's first successfully tested Montney horizontal well, DEI Bigstone Hz 14-29-60-22W5. The 14-29, (37.5% BPO/25% APO working interest) which parallels part of and directly offsets the 15-32 well, flowed at a rate of approximately 4.3 million cubic feet per day of natural gas (mmcf/d) and 295 barrels per day (bbl/d) of condensate from a 1,254 meter lateral (1,011 barrels of oil equivalent per day (boe/d)) during the last 24 hours of a 4 day production test. The 15-32 well will be frac'd with the same, synthetic oil-based multi-stage system utilized in the completion of the 14-29 well.
The long lateral or "extended reach" horizontal wells, in suitable areas, have the potential of reducing well density by up to 50% over the shorter 1200 meter laterals, improving project economics and substantially reducing the surface environmental footprint. To date, 11 of the 15 Montney horizontal wells currently drilled in the Bigstone/Fir area are "extended reach" with laterals ranging in length from 2,200 to 2,800 meters, while the remaining four wells have laterals of 1,200 to 1,300 meters. Each of these shorter laterals were drilled by local operators, to assess the development potential of the Montney formation, liquids rich natural gas resource in this area by employing current, state of the art horizontal drilling and fracture stimulation techniques prior to moving to the extended reach longer laterals for development purposes.
Planning for drilling a third well and construction of gas gathering and production facilities are currently underway with a targeted start-up and on stream to sales commencing in Q2 2012. Pennant holds a 25% working interest in 7 gross sections (1.75 net) sections at Bigstone, which could potentially support an equivalent of 4 (1.0 net) horizontal wells per section, depending on lateral length.
Pennant and its partners continue to work toward having 3 wells drilled completed and tied in by the end of the winter drilling season. Thomas Yingling, President of Pennant Energy Inc. stated, "Once these first Bigstone wells are on stream it will add significantly to our current production and reserve base as well as our overall understanding of the Bigstone prospect's potential."
To view a brief video detailing the horizontal frac process please visit our web site at www.pennantenergy.com and for further information on any of our projects please feel free to contact the company at 604-689-1799.
ON BEHALF OF THE BOARD OF DIRECTORS OF PENNANT ENERGY INC.
Mr. Thomas Yingling, President