Pennant Energy Inc. says that the well "Highpine et al Pembina 102/16-29-048-08W5/00" has been drilled to total depth and cased. The well, which spud on March 9, was drilled in 19 days, 7 days under the original estimated time of 26 days to reach this stage of operations. The Nisku formation was encountered close to depth prognosis. Timing of the completion and testing operations is contingent upon weather conditions. The recent warm weather has resulted in diurnal road bans restricting transportation of heavy equipment to the cooler, night time hours. Announcement of testing operations will be made upon Highpine's notification to Pennant. The Company is participating as to a 24% interest in the well.

The Pembina Field is a large, mature oil and gas field centered approximately 65 miles southwest of the City of Edmonton, Alberta. The Pembina Devonian Nisku play has been evolving since 2002-2003 through the application of improved 3D seismic data recording and interpretation techniques. The hydrocarbon accumulations are trapped in dolomitized reefs encountered in a northwest -- southeast trend, extending through and including Townships 48-49 Ranges 8-9W5.

The Nisku reef wells have exhibited prolific production and reserves, producing both light oil and liquids rich, sour natural gas. The Pennant well location is 102/16-29-048-08W5/00; immediately to the west lies the Nisku VV pool (section 1-049-09W5) while, the Nisku SS pool is directly east in sections 27 and 28-048-08W5. The Alberta EUB reports recoverable oil and gas reserves of 2.1 million barrels and 5.2 BCF respectively for the Nisku VV Pool, while the Nisku SS Pool recoverable reserves of 780 thousand barrels of oil and 1.6 BCF of gas are reported. Individual wells in each of these pools have produced at rates of in excess of 1000 barrels of oil per day (bopd) and 3 million cubic feet per day (Mmcfd).

The 16-29 well is targeting gas and condensate production from the Nisku MMM pool, which was discovered with the drilling of, West Energy Pem 14-28-48-8W5 (the "14-28 well") in 2005. Based on 3D seismic data, the reservoir is approximately 140 acres in area with an average potential pay interval of 25 feet. The hydrocarbon column in Nisku pools is underlain by a regional water table. Completion and production operations of Nisku wells are undertaken in a manner to optimize recovery before water influx.

The 14-28 well was completed in the Nisku MMM pool and initialized production at daily gas rates of over 3.5 Mmcfd with condensate production as high as 135 barrels per day reported; however, early water breakthrough occurred, possibly a result of problems encountered during completion operations. The Highpine well was drilled directionally, from the surface location 01-32-48-08W5 to the targeted TD location at 102/16-29-48-08W5/00, in an attempt to optimize hydrocarbon capture from the pool before water influx. The Company share of the cost to drill and casing the well is expected to be under $500,000.

Tags: Pennant Energy Inc.