VANCOUVER, BRITISH COLUMBIA–(Marketwired – Feb. 11, 2014) – Pennant Energy Inc. (“Pennant” or the “Company”) (TSX VENTURE:PEN) is pleased to announce that its partner, Blackbird Energy Inc. (“Blackbird”), plans to spud the first horizontal well on the Mantario Oil Project in the second quarter of 2014, subject to weather and rig availability. The well will be spudded from a surface location at 16-1-26-25W3 with a horizontal lateral length of 800 meters. The trajectory of the horizontal well has been established using proprietary high resolution 3D seismic and existing well control. Pennant holds a 30% operated working interest in the project.
This planned horizontal well is the follow-up to the successful A15-6-26-24W3 discovery well that encountered a 20 meter pay section and is still producing in excess of 20 bbls/d with minimal water.
Pennant and Blackbird are close to completing a detailed exploitation study for the Mantario Oil Project which would encompass approximately 15 Hz locations with 80 acre spacing. Downspacing to 40 acres would allow for an additional 15 Hz locations. In addition to downspacing, the companies are evaluating secondary recovery methods to improve the overall recovery factors for the pool.
The costs of the horizontal well at the Mantario Oil Project are expected to be less than $1,000,000 including drilling, completion, equipping and installation of surface facilities, and would qualify for the exceptional 2.5% royalty incentive currently received in Saskatchewan for drilling a horizontal well. Pennant estimates that its portion the costs will be approximately $250,000 and is considering alternatives for funding such costs.
About Pennant Energy
The Mantario Project is comprised of a total of 1,440 acres (net 432 acres) in West Central Saskatchewan. Multiple oil drilling locations have been identified based on the 3D technical review. Pennant holds a 30% non-operated working interest in the project.
Pennant’s Bigstone Project is comprised of lands and licenses covering a total of 5,120 acres (net 1,120 acres), in Township 60, ranges 22 and 23W5 at Bigstone, Alberta. By completing the terms of a farm in agreement with Donnybrook Energy Inc., Pennant earned 25 per cent of Donnybrook’s interest in the Bigstone lands and in any future operations within an area of mutual interest.
On behalf of the board of
PENNANT ENERGY INC.
Garth Braun, Chief Executive Officer and Director
Disclaimer for Forward-Looking Information
This news release contains forward-looking statements that involve various risks and uncertainties regarding future events relating to the proposed spudding of the first horizontal well at the Company’s Mantario Project including, but not limited to, the projected cost thereof and eligibility for any royalty incentive. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements and are not guarantees of future performance of the Company. Although Pennant believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with oil and gas exploration and production, (3) a decreased demand for natural gas, (4) any number of events or causes which may delay or cease exploration and development of the Company’s property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labour problems, (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, and (8) other factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release and, accordingly, are subject to change after such date. Except as required by law, the Company assumes no obligation to update these forward-looking statements or to update the reasons why actual results differed from those projected in the forward-looking statements
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