Pennant Energy Inc.: Bigstone Field, Montney Horizontal Well Update
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 16, 2011) - Thomas Yingling, President of Pennant Energy Inc. (TSX VENTURE:PEN) ispleased to provide an update on the Companies Bigstone Field, MontneyHorizontal well with its joint venture partner, and operator, DonnybrookEnergy Inc. (Donnybrook) of Calgary. Donnybrook has informed Pennantthat they have received the license for the drilling of a Montneyhorizontal well (the "Test well") at 14-29-60-22w5Bigstone Alberta and that the Test Well will be drilled from a surfacelocation of 3-29-60-22w5 with a projected lateral leg of 1400m.Donnybrook has informed Pennant that it has secured a contract for adrilling rig and construction of the surface lease and all roads iscompleted. Pennant has forwarded all of its required drilling funds toDonnybrook as per the AFE (Authority for Expenditure) received fromDonnybrook. The rig will be moved on lease in less than 2 weeks time,weather permitting. The estimated time to drill the well to total depthand carry out completion operations is expected to be approximately 42days from spud date.
Upon drilling the Test Well and completing the terms of thefarmin agreement, Pennant will earn 25% interest in a total of 7sections of Donnybrook's lands at Bigstone and in any future operationswithin an Area of Mutual Interest (AMI). Donnybrook will act as operatorand participate as to a 25% working interest W.I. in the drilling,completion and tie-in (or abandonment) of the test well. Details of theearning terms for the Donnybrook Bigstone Farmin are set out in thePennant news release dated March 11, 2011.
The Bigstone Field (Twp. 60- Rge.22W5) is locatedapproximately 250 kilometers west-northwest of Edmonton, Alberta. Itfalls within the Deep Basin Resource play corridor, which continuesnorthwest into British Columbia. The Bigstone prospect area is ideallysituated to encounter Montney Formation at depths that have been provento contain some of the richest natural gas liquid (NGL) content withinthe Alberta Montney trend. In the Fir Field, approximately 5 miles southof our Bigstone 14-29-60-22w5 Test well location, four Montneyhorizontal wells have recently been drilled. Results on two of the wellshave been released with test rates ranging from 3.5mmcf/d and 225 bblsof NGL's, to 13.1 mmcf/d and 655 bbls of NGL's respectively from the1-mile and 2 mile long Horizontals. On a combined basis, after adjustingfor shrinkage, the longer 2 mile horizontal well's test equates toapproximately 2,620 BOE per day. A total of 7 more horizontal wells arecurrently planned to be drilled at Fir in the balance of 2011.
The Bigstone/Fir Montney play has also expanded directly westof company lands as evidenced by the licensing of a new Montneyhorizontal location at 02/13-33-60-23W5/0 by Athabasca Oil Sands. ThisMontney test is located 2 miles west of Pennant's 7 section farmin onDonnybrook.
Like the Bigstone area, the horizontal wells at Fir aretargeting Montney sands identified in previously drilled vertical wells,which had not been completed in the Montney. The results of the Firhorizontal wells confirm both the high NGL content of the Montney inthis area and the potential for horizontal drilling and multi stagefracture techniques to successfully exploit these tight reservoirs.There are four vertical wells on the 7 sections of farmin lands Pennantwill earn in at Bigstone that were drilled to explore for deeperhorizons. Each of those wells encountered a similar Montney sandsequence that correlates to the vertical wells that directly offset thesuccessful Montney horizontal tests at Fir, 5 miles to the south. TheDonnybrook 14-29-60-22w5 Test Well will target those sand sequences. Toview a brief video detailing the horizontal multi stage frac processplease follow the link here: https://www.pennantenergy.com/s/Videos.asp.
Pennant is pleased to be able to partner with Donnybrook whohas experienced success in exploring the Montney at Resthaven (Twp62-2W6) and Simonette (Twp 61-27W5).
For further information on any of our projects please feel free to contact the company at 604-689-1799 or visit our web site at www.pennantenergy.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF PENNANT ENERGY INC.
Mr. Thomas Yingling, President