VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 08/16/11 — Thomas Yingling, President of Pennant Energy Inc. (TSX VENTURE: PEN) is pleased to provide an update on the Companies Bigstone Field, Montney Horizontal well with its joint venture partner, and operator, Donnybrook Energy Inc. (Donnybrook) of Calgary. Donnybrook has informed Pennant that they have received the license for the drilling of a Montney horizontal well (the “Test well”) at 14-29-60-22w5 Bigstone Alberta and that the Test Well will be drilled from a surface location of 3-29-60-22w5 with a projected lateral leg of 1400m. Donnybrook has informed Pennant that it has secured a contract for a drilling rig and construction of the surface lease and all roads is completed. Pennant has forwarded all of its required drilling funds to Donnybrook as per the AFE (Authority for Expenditure) received from Donnybrook. The rig will be moved on lease in less than 2 weeks time, weather permitting. The estimated time to drill the well to total depth and carry out completion operations is expected to be approximately 42 days from spud date.
Upon drilling the Test Well and completing the terms of the farmin agreement, Pennant will earn 25% interest in a total of 7 sections of Donnybrook–s lands at Bigstone and in any future operations within an Area of Mutual Interest (AMI). Donnybrook will act as operator and participate as to a 25% working interest W.I. in the drilling, completion and tie-in (or abandonment) of the test well. Details of the earning terms for the Donnybrook Bigstone Farmin are set out in the Pennant news release dated March 11, 2011.
The Bigstone Field (Twp. 60- Rge.22W5) is located approximately 250 kilometers west-northwest of Edmonton, Alberta. It falls within the Deep Basin Resource play corridor, which continues northwest into British Columbia. The Bigstone prospect area is ideally situated to encounter Montney Formation at depths that have been proven to contain some of the richest natural gas liquid (NGL) content within the Alberta Montney trend. In the Fir Field, approximately 5 miles south of our Bigstone 14-29-60-22w5 Test well location, four Montney horizontal wells have recently been drilled. Results on two of the wells have been released with test rates ranging from 3.5mmcf/d and 225 bbls of NGL–s, to 13.1 mmcf/d and 655 bbls of NGL–s respectively from the 1-mile and 2 mile long Horizontals. On a combined basis, after adjusting for shrinkage, the longer 2 mile horizontal well–s test equates to approximately 2,620 BOE per day. A total of 7 more horizontal wells are currently planned to be drilled at Fir in the balance of 2011.
The Bigstone/Fir Montney play has also expanded directly west of company lands as evidenced by the licensing of a new Montney horizontal location at 02/13-33-60-23W5/0 by Athabasca Oil Sands. This Montney test is located 2 miles west of Pennant–s 7 section farmin on Donnybrook.
Like the Bigstone area, the horizontal wells at Fir are targeting Montney sands identified in previously drilled vertical wells, which had not been completed in the Montney. The results of the Fir horizontal wells confirm both the high NGL content of the Montney in this area and the potential for horizontal drilling and multi stage fracture techniques to successfully exploit these tight reservoirs. There are four vertical wells on the 7 sections of farmin lands Pennant will earn in at Bigstone that were drilled to explore for deeper horizons. Each of those wells encountered a similar Montney sand sequence that correlates to the vertical wells that directly offset the successful Montney horizontal tests at Fir, 5 miles to the south. The Donnybrook 14-29-60-22w5 Test Well will target those sand sequences. To view a brief video detailing the horizontal multi stage frac process please follow the link here: .
Pennant is pleased to be able to partner with Donnybrook who has experienced success in exploring the Montney at Resthaven (Twp 62-2W6) 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 .
ON BEHALF OF THE BOARD OF DIRECTORS OF PENNANT ENERGY INC.
Mr. Thomas Yingling, President
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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Pennant Energy Inc.
Mr. Thomas Yingling
President
604-689-1799
604-689-8199 (FAX)