At the recently drilled A15-6-26-24W3 (A15-6) well on its Mantario project, Pennant encountered a 20 meter pay section in the Success formation containing oil bearing sands. The well is now tied in and producing approximately 25 bbls/d of heavy oil with minimal water cut. The well has a high pumping fluid level with additional production capability. The Company is monitoring the well's sand cuts and torque levels for stabilization before further increasing the production rate. The Company is following a carefully planned development versus high initial rates at the cost of future profit.

Pennant and its partner Blackbird Energy Inc. are now beginning to evaluate utilizing horizontal drilling as this project would lend itself exceptionally well to this type of development as it would increase production and total recoverable oil. These horizontal wells have great economics as they require no expensive packer systems or fracture stimulation and qualify for exceptional royalty incentives.

Tags: Pennant Energy Inc.