pen news but not much new
Pennant delays completion phase at Montney well
2012-05-18 19:28 ET - News Release
Mr. Thomas Yingling reports
PENNANT ENERGY INC PROVIDES UPDATE ON BIGSTONE PROJECT
Pennant Energy Inc. is providing the following update on its Bigstone liquids-rich natural gas resource project.
The Bigstone Montney extended-reach horizontal well 13-33-060-22W5. The well is equipped with liner and packer assembly and is ready for the multistage fracturing operation. Pennant and its joint venture partners were ready to commence fracking and completion operations for their recently drilled well in mid-April. However, due to the annual spring-breakup-imposed road bans, which were activated during the second week of April, these operations are temporarily on hold. The operator will commence the completion phase of the operations as soon as weather conditions allow for the drilling rig to be removed and completion operations initiated. Pennant anticipates these operations could commence any time within the next two weeks. Pennant holds an undivided 12.5-per-cent pooled interest in the pooled lands and is participating as to a 12.5-per-cent working interest in the drilling and completion of the 13-33-060-22W5 well.
As stated in the company's April 10, 2012, press release, construction of the surface production facilities and a 1.6-mile, eight-inch pipeline to the gas-gathering system has been completed and ready for production. Production start-up is currently waiting on a connecting pipeline to be recommissioned and a scheduled maintenance for the processing plant, which could delay production start-up until mid-June.
Thomas Yingling, president of Pennant, stated: "Although these delays are unfortunate, the fundamentals of the company remain stronger than ever. We are just a few weeks away from tying in the companies' first two Bigstone wells, which will increase our cash flow dramatically. We are also just a few weeks away from fracking and testing our third Bigstone horizontal well, joint ventured with a major. During these difficult global market conditions, share prices of many companies are suffering. Pennant is no exception. However, once our balance sheet reflects the earnings from the new wells being tied in, combined with the fact that we have no debt, cash in the bank and good share structure, the company will have reached a significant milestone and turning point. I would like to thank the Pennant shareholders for their patience."
The company also announces that it has granted stock option agreements to its directors, officers, employees and consultants to purchase up to an aggregate of 900,000 common shares of the company, exercisable at the price of 10 cents per share for five years. The stock options will be granted in accordance with the company's stock option plan and will have the required four-month hold period pursuant to the policies of the TSX Venture Exchange.
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