Pennine Petroleum Corporation announces participation in Tunisia seismic program

2007-01-12

TSX - Toronto Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Potash · Canada

TSX Venture: PNN

CALGARY, Jan. 12 /CNW/ - Pennine Petroleum Corporation (TSXV: PNN; "Pennine" or "Corporation") is pleased to announce that the Corporation has exercised its option, along with Exceed Capital Holdings Ltd. ("Exceed"), to participate in a seismic program in the Jorf permit located onshore of south-central Tunisia, approximately 150 kilometres southwest of Gafsa, held by Cygam Energy Inc. ("Cygam").

Under the terms of each option, Pennine and Exceed will each pay 15 percent of the cost of acquiring a new 200 kilometre seismic program to finalize the precise location for an exploratory well planned in 2007, with cost to Pennine of approximately $60,000 CAD. Additionally, Pennine and Exceed will each pay 15 percent of drilling and completion costs to earn a 10 percent interest in the first identified drillable structure, with a further option to farm-in on drilling into other structures within the concession on the same terms, with cost to Pennine of approximately $450,000 CAD.

A review of previously acquired seismic data of approximately 2,000 kilometres has identified two anomalies and are interpreted as being reef build-ups of upper to lower Permian age with significant thickness and lateral extent. Seismic parameters for a new approximately 200 kilometres state-of-the-art seismic program have been finalized and a seismic crew operating in Tunisia has been selected. It is expected that seismic operations will commence in January 2007. Once the new seismic data has been interpreted and integrated with the existing data, Cygam will determine which of the two anomalies will be drilled first.

Seismic and drilling operations will be conducted through Cygam's wholly-owned subsidiary, Rigo Oil Company Limited (Tunisia). The bid process to select a drilling rig will be finalized shortly and Cygam has already acquired long delivery items such as wellhead, casing and related equipment. Drilling operations are expected to commence prior to August, 2007.

The Jorf permit encompasses an area of approximately one million acres. The northern boundary of the exploration permit is within 35 kilometres of the Gulf of Gabes. Major oil and gas pipelines from the giant El Borma oil and gas field and other southern Tunisian oil fields traverse the Jorf block (within 10 to 40 kilometres, respectively, from the two potential locations) and connect to the La Skhira oil terminal in the Gulf of Gabes.

Pennine Petroleum Corporation is an Alberta-based junior oil and natural gas company focused on the exploration for and development of petroleum and natural gas properties primarily in Western Canada and on a selective basis, internationally.

Forward-Looking Statements: All statements, other than statements of historical fact, set forth in this news release, including without limitation, assumptions and statements regarding reservoirs, resources and reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Corporation are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Corporation at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept

responsibility for the adequacy or accuracy of this release.