Pennant Energy Inc.: Pearl/Watts well increased production
(firmenpresse) -
Pennant Energy Inc.: Pearl/Watts well increased production
Pennant Energy Inc. (the "Company") (TSX Venture Exchange -- PEN") is pleased to announce that the operator of the Watts Project (also referred to as "Pearl") has informed the Company that tie-in construction operations were completed and production from the "Drumlin Pearl 7-9-30-16W4" well began on August 15, 2010, on-time and under budget. Production was initiated at a raw gas rate of approximately 500 thousand cubic feet per day (mcf/day) and as of September 3, had gradually been ramped up to the planned operating range of 1,000 mcf/day, (in terms of barrels of oil equivalent - 167 BOE/day or 82 BOE/day net to Company interest). The Company owns a reversionary working interest in the well and section 9 and 50% working interest in various P&NG rights in two sections (1280 gross acres) of land offsetting the Drumlin Pearl acreage as described hereunder. Contingent upon the performance of the Drumlin Pearl well, development drilling of the offset acreage may commence in early fall 2010.
The terms of the Farmin Agreement called for the Company to pay 75% of the costs to drill and complete the Test well and 50% of equipping and tie-in costs. By satisfying the terms of the Agreement, the Company has earned a reversionary working interest of 50% BPO reverting to an APO interest of 25% after recovery of a capital cost multiple equal to 300% of a drilling and completion costs. There are no burdens other than Albert Crown royalties on new gas, which will qualify for the Alberta New Well Incentive Program maximum rate of 5% during the first year of operation or 500 million cubic feet of gas (Mmcf), whichever occurs first. In addition, the Company earned an undivided 25% working interest in all PNG rights to the base of the deepest formation evaluated on the Farmout Lands which covered 1 section or 640 gross acres. The Company also owns a 50% interest in the P&NG rights below the base of the Edmonton Group in section 16-30-16W4 and 50% interest in the P&NG rights from surface to the base of the Belly River group in section 4-16-30W4 totaling 1280 gross acres. The Company has the option to participate as to a 50% WI in future land acquisitions, exploration and development within an area of mutual interest (AMI) for a period of 1 year from the effective date of the Agreement.
The Pearl well not only qualifies for the Alberta New Well Incentive Program, upon application the Company will qualify for the $200-per-meter-drilled, Crown royalty drilling credit.
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.
"JimBritton"
Mr. Jim Britton
P. Geol. - Director
This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
BOEs may be misleading, particularily when used in isolation. A BOE conversion ratio of 6Mcf: 1 bbl is based on energy equivalency conversion method primarily applicable at the burner tip and does not present a value equivalency at the wellhead.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Leseranfragen:
Head Office/ Investor Relations
PO Box 10144, Pacific Centre
Suite 1818, 701 West Georgia Street
Vancouver, BC V7Y 1C6
T: 604.689.1799
F: 604.689.8199
E: info(at)pennantenergy.com
Datum: 25.10.2010 - 14:57 Uhr
Sprache: Deutsch
News-ID 25998
Anzahl Zeichen: 0
contact information:
Town:
Wien
Kategorie:
Business News
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