Vitesse Energy Inc. press release
Pennine Petroleum Corporation Announces Operations Update
NYSE - New York Stock Exchange · Oil · Natural Gas · United States
TSX Venture: PNN
CALGARY, Jan. 12 /CNW/ - Pennine Petroleum Corporation (TSXV: PNN; "Pennine" or "Corporation") is pleased to announce an update to its domestic and international operations.
CANADA
Chauvin Area, Eastern Alberta
During the fourth quarter of 2006, Pennine continued to production test two wells drilled in the Chauvin area of Eastern Alberta. Both wells proved to be commercial and are collectively producing approximately 50 bbls/d gross (33 bbls/d net). Pennine currently holds a 66 percent working interest in these wells.
Success, Southern Saskatchewan
With its partner, Pennine acquired a further 50 percent interest in 2 additional sections and now holds a 50 percent interest in approximately 2,400 acres and 2 producing wells in this area. Current gross production stands at 15 bbls/d gross (7.5 bbls/d net). Plans are to drill at least two infill wells in the first quarter of 2007.
Pincher Creek, Southern Alberta
Pennine has agreed to a joint venture arrangement with a third party in all of Pennine's interests in Pincher Creek under which the third party will hold a 17.5 percent interest out of Pennine's interest. In addition, the third party has acquired a right to earn into the interests of another party in the same lands. The third party will become the designated operator of the deep Rundle prospect after the well has been spudded.
Pennine intends to recomplete 1 deep well in this area during the first quarter of 2007. The recompletion will concentrate on three zones in the Cretaceous formation and is in similar geological sequence to recent successes by other companies in the Lookout Butte field to the south.
Pennine intends to drill its first deep prospect in the Rundle formation before the end of the second quarter of 2007, subject to governmental and regulatory approval. This well will be drilled into a virgin reservoir acknowledged to have structure above the known gas contact and offsets some of the largest wells in the field. Pennine retains approximately 30 percent working interest in this play after farmout.
Lucy/Gunnell, North East British Columbia
Pennine reached TD in the well to test the Keg River on December 24, 2006. From logging and testing, it was ascertained that the well had penetrated the slope of the reef and a sidetrack was commenced. The sidetrack was completed on January 4, 2007 and the main part of the reef had still not been tested.
During the course of drilling, Pennine and its partners found encouraging gas shows above the Keg River and are designing a testing program for these zones. The Keg River has been remapped and a further test into the main reef has been proposed.
Cypress, Southern Alberta
Pennine has concluded its negotiations to earn a 50 percent interest in at least 10,000 acres in the Cypress area of Southern Alberta. Pennine intends to tie in 9 shallow gas wells in the first quarter of 2007. Pennine will also drill at least 2 wells, with a 100 percent working interest, during the same period for the Sunburst and Bow Island targets.
INTERNATIONAL
Tunisia
Pennine has exercised it 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.
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.
The Jorf permit, located onshore of south-central Tunisia, encompasses an area of approximately one million acres.
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.
Reference may be made to barrels of oil equivalent (BOE). Barrels of oil equivalent may be misleading, particularly if used in isolation. In accordance with National Instrument 51-101, a BOE conversion ratio for natural gas of 6 Mcf: 1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent 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.