Drilling Ahead in Primary Target Horizontal Level

RNS Number : 4510V

Pennpetro Energy PLC

05 April 2023

 

Pennpetro Energy PLC

("PPP" or "Pennpetro")

Texas Oil Well - Drilling Ahead in Primary Target Horizontal (Side-Track) Level

Highlights:

·     Drill bit has reached the Austin Chalk interval below the 7 inch casing shoe at its target depth of -7,303 feet true vertical depth subsea ("TVDSS")

·     Drill bit now cutting fresh ground along the planned 4,800 feet lateral (or "Horizontal Side-Track") within the Austin Chalk's primary oil target interval.

London,  5 April 2023 - Pennpetro Energy PLC (LSE:PPP), an independent oil and gas company focusing on production and development in Gonzales County, Texas, USA, notifies that drilling operations have progressed smoothly on the Whistling Straits well with the drill bit now being at a vertical target depth of -7,303 feet TVDSS and has now commenced drilling the planned 4,800 feet lateral within the Austin Chalk target interval.

The Whistling Straights well has been renamed the "Whistling Straits #5H" well (previously referred to as the "Whistling Straits #1H well) and is the first well under its recently signed Participation, Development and Option Agreement between Pennpetro's 100% owned subsidiary, Nobel Petroleum USA Inc, and Millennium PetroCapital Corporation ("Millennium") within the 250,000 acre (1,011 square kilometres) Area of Mutual Interest ("AMI") petroleum joint venture in Gonzales County, Texas.

Tom Evans, Pennpetro's CEO, commented: "I am very pleased with the progress made this week with drilling our first development well in the Peach Creek Oil Field in partnership with Millennium. We are now drilling fresh ground in the Austin Chalk horizontal side-track heading towards the primary oil target. We have high expectations for the well and I look forward to updating shareholders in the coming days as we progress towards reaching total depth and completion."

Andy Clifford, Nobel's President, said: "We are targeting the heart of an interpreted microfracture swarm within the Austin Chalk, identified by cutting-edge 3-D reprocessing and interpretation coupled with analysis of regional well results in preparation for drilling the well, best positioning the well to deliver the highest potential production from naturally-occurring fractures." 

The Gonzales County 250,000 acre (1,011 square kilometres) AMI is located about 290 miles (466 kilometres) due west of Houston and will provide PPP's Nobel with a large inventory of low risk development options in a world class oilfield.

Nobel is paying 33.33% of the cost to drill and complete this joint development well connected to the storage tanks for a net 25% working interest (18.75% net revenue interest) as well as a prospect fee which covers sunk costs relating to leasing, land, legal, 3D seismic licensing, geological and geophysical analysis.

-ENDS-

This announcement contains inside information within the meaning of Article 7(1) of (i) Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014, as amended (the "EU Market Abuse Regulation") and (ii) the EU Market Abuse Regulation as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.

ENQUIRIES:

Pennpetro Energy PLC: Tom Evans, CEO	[e-mail]
Brokers: Zeus Capital Simon Johnson	[phone]
Peterhouse Capital Limited Lucy Williams  Duncan Vasey	[phone] [phone]
Media and Investor Relations: Instinctif Partners   Galyna Kulachek Isadora Pegler	[e-mail] [phone]

NOTES TO EDITORS:

Pennpetro Energy is an independent oil and gas company focusing on production in the Gonzales Oil Field in Texas, USA. Shares in the company were admitted to the Official List of the London Stock Exchange by way of a Standard Listing on 21 December 2017 with the ticker symbol " PPP " . Its wholly owned subsidiary, Nobel Petroleum USA Inc. has a Participation, Development and Option Agreement and Joint Operating Agreement with Texas based Millennium PetroCapital Corporation over a 250,000 acre Area of Mutual Interest in Gonzales County, Texas, aimed at exploiting the prolific proven Austin Chalk oil and gas play. Pennpetro Energy has also recently signed a conditional binding agreement to conduct a new 3D seismic survey on the Horse Hill Oil Field near London's Gatwick Airport which paves the way to drilling the next production well (HH-3) for 49% of the revenue of this proposed well.

Further information on the Company can be found at www.pennpetroenergy.co.uk

 

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