February 16, 2012 08:00 ET
Pennant Energy Inc.: Bigstone Montney Development Moving Ahead
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2012) - Thomas Yingling, President of Pennant Energy Inc. (TSX VENTURE:PEN) is pleased to provide an operations update on its Bigstone Montney high natural gas liquids resource play. Production tubing has been installed in the Donnybrook Energy Bigstone Hz 15-32-60-22 W5M well (25% working interest to Pennant) and a 7 day production test has been completed. The well flowed at an average rate of 1.1 mmcf of gas per day and 153bbls of fluid per day. The fluid was a combination of condensate and load oil from the hydraulic fracture treatment. To date the well has recovered 992 m3 of frac oil from the 1,810 m3 of load oil that was injected during the fracture operation. A review of the 24 stage hydraulic fracture that was performed on the well indicates that only 5 of the 24 stages of the planned fracture programed were successfully stimulated. During the hydraulic fracture operation 460 tons of fracture propant and fluids were placed. A mechanical failure during the first stage of the hydraulic fracture program appears to have prevented up to 16 stages of the Montney formation from being fracture stimulated and 3 stages may have received all of the 360 tonnes of hydraulic fracture stimulation that was to planned for the first 18 stages. During the production testing the well continued to flow back high concentrations of load oil from the fracture stimulation and it is believed that as the well continues to unload frac oil the production rates of natural gas, condensate and NGLs will improve. As a result the well completion rates do not reflect the quality of reservoir the well encountered while drilling. The 15-32 well encountered 2,744 m of high quality Montney reservoir with strong gas shows and excellent penetration rates. The reservoir encountered is comparable to the Montney interval that was successfully completed in 14-29 Bigstone discovery well. The 15-32 well is currently shut in for pressure build up and analysis and will be placed on production with Pennant's first Bigstone Montney well, Donnybrook et al 14-29-60-22w5, which was the 1,200m Hz Bigstone Montney discovery well that tested 4.3mmcf/d and 295 barrels of NGLs (1,011 barrels of oil equivalent per day as soon as the pipeline and production facilities are completed. Construction operations for the pipeline surface facilities are expected to commence in mid-February with all facilities ready for production to start by April 1st.
Donnybrook has informed Pennant the next well to drilled at Bigstone is scheduled to spud within 2 weeks from a surface location at 4-28-60-22w5 and will be an extended reach 2,700m Hz well with a bottom hole location in 13-33-60-22w5.
Pennant's Bigstone Project is comprised licences covering a total of 7 sections or 4,480 acres (1.75 net sections, 1,120 nets acres), in Township 60, ranges 22 and 23W5 at Bigstone, Alberta. Pennant has earned 25 per cent of Donnybrook Energy Inc.'s interest in the Bigstone lands and in any future operations within an area of mutual interest.
Thomas Yingling, President of Pennant Energy Inc., stated, "The mechanical issues we encountered with the 15-32 well are disappointing and have clearly restricted the flow rates from our well. However, we are encouraged by the results of a similar extended reach Hz well directly offsetting and projecting into the center of our land block that reported a final 24 hour test rate after a 4 day flow period of over 2,850 boe/d. We are confident that that well is a more accurate measure of the potential of the Montney on our lands and look forward to drilling and completing our next well which will commence within 2 weeks on this exciting prospect."
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