Hydrocarbon Shows in Whispering Straits 5H well

RNS Number : 7825V

Pennpetro Energy PLC

11 April 2023

 

Pennpetro Energy PLC

("PPP" or "Pennpetro")

Hydrocarbon Shows in Whispering Straits 5H well -Texas Oil

London, 11 April 2023 - Pennpetro Energy PLC (LSE: PPP), an independent oil and gas company focusing on production and development in Gonzales County, Texas, USA, is pleased to advise that hydrocarbon shows (oil and gas) are being logged in the Whistling Straits 5H well, which is currently being drilled in the Peach Creek Oil Field, Gonzales County, Texas.

The planned well has a 12,760 feet total measured depth ("MD") with a 7,545 feet true vertical depth ("TVD") horizontal well, which includes the well ending in a 4,800-feet lateral within the Austin Chalk target interval. As at the latest report from the drill site at 6pm Texas time on 10 April (midnight UK time on 11 April), the well was at 9,682 feet MD and drilling on. Drilling rates in the past 24 hours have been excellent at around 1,300 feet per day and drilling continues towards the well's ultimate planned total measured depth of 12,760 feet.

Oil shows have been seen on the rig's skimmer tanks from 8,120 feet over numerous extended intervals. Gas flares are registering between 129-226 units of gas including C1 through to C4.

The Whistling Straits 5H well is the first well to be drilled 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 km²) Area of Mutual Interest ("AMI") petroleum joint venture in Gonzales County, Texas.

Tom Evans, Pennpetro's CEO, commented: "It's very pleasing to see that oil and gas shows can be seen in the drilling of this and over extended distances along the beginning of the 4,800 feet planned lateral through the Austin Chalk. The team on site have taken their time to correctly achieve the necessary curvature of the well from the vertical and have achieved outstanding rig performance with establishing the sidetrack on the right trajectory on such a tight side-track window. I look forward to updating shareholders in the coming days as we progress towards reaching total depth and completion."

Andy Clifford, Nobel's President, added: "The drilling crew on the Wisco Moran Rig 16 and the Millennium site management have done an excellent drilling job to date with their precision placing of the side-track. This side-track had extremely tight tolerances for drill trajectory in order to hit our target zones and the trajectory of the drill bit path has been spot on landing at +/- 10 feet from target at the 9,300 feet MD mark."

The Gonzales County 250,000-acre (1,011 km²) 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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