REG - Pennpetro Energy PLC - Completion of Gonzales oil leases transaction

Pennpetro EnergyAnnouncement

19/07/2023 07:00

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RNS Number : 4376G  Pennpetro Energy PLC  19 July 2023

Pennpetro Energy PLC

("PPP" or "Pennpetro")

 

Completion of transaction to increased interest in oil leases in Gonzales
County, Texas

London, 19th July 2023 - Pennpetro Energy PLC (LSE: PPP), an independent oil
and gas company focusing on production and development in Gonzales County,
Texas, USA, through its 100% subsidiary, Nobel Petroleum USA Inc. ("Nobel"),
has now completed the legal processes in Texas to complete the transaction
with Millennium PetroCapital Corporation ("Millennium"), as announced on 27
June 2023, to increase its stake in the Whistling Straits 5H well from a 25%
working interest ("WI") to a 100% WI with 75% net revenue interest ("NRI") and
to assume operatorship of the well with immediate effect in addition to
2,036.38 acres of oil leases.

Highlights

·      Completion of acquisition of 100% Working Interest and
operatorship in Whistling Straits #5H well

·      100% acquisition of 10 tracts, increasing Gonzales footprint by
2,036.38 acres

·      Giving exclusive rights to 100% WI in two other adjacent
developed wellbores (Chalk Talk #1H & #4H)

·      Engineering studies to commence to bring back on the City of
Gonzales #1 well which Pennpetro drilling in 2018 and shut-in in 2020

·      Company fully funded to bring all wells into near-term production

 

Tom Evans, Pennpetro Energy's CEO said:

 

"Pennpetro has fortuitously gone from having a minority interest in just the
Whistling Straights #5 well, to now having operatorship and a 100% interest in
four (4) potential oil production wells in Gonzales County in Texas.  This is
a big game changer for the Company."

 

"Yesterday we completed the legal transfer of the oil assets in Texas with
Millennium, giving Pennpetro the operatorship of the Whistling Straits #5H
well and access to 100% working interest in two nearby oil wells. Over the
coming weeks and months, the Company will be working with its management and
consultants to bringing the Chalk Talk #1H and #4H wells back online, flow
testing the Whistling straits 5H well and potentially bring back online the
100% owned City of Gonzales #1 (COG #1) well that Pennpetro was forced to shut
in over the Covid period."

 

"Chalk Talk wells initial production rates ranged from 100-400 barrels of oil
per day, so we are optimistic that we could see the Chalk Talk #1H and #4H
wells providing PPP with some good oil production numbers in future. The
recent placings have also brought forward the possibility of us putting our
COG #1H well back into production since it was shut-in over the Covid period."

 

"As we previously reported, Millennium, the previous Operator of Whistling
Straights #5H well unsuccessfully installed a jet pump to clean up the well
and until now has yet to recover all the load water used during drilling and
completion, from the well. Our plans are to change to an electrical
submersible pump (ESP), which has the benefits of having a positive
displacement pump, to recover the remaining drill fluids to surface and bring
on the oil."

-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.

 

For further information visit www.pennpetroenergy.co.uk
(http://www.pennpetroenergy.co.uk) or follow us on twitter @pennpetro or
contact:

 

 Pennpetro Energy PLC:

 Tom Evans, CEO                                                                                                   tme@pennpetroenergy.com

 Brokers:                                                                                                         +44 (0) 207 614 5900

 Zeus Capital

 Simon Johnson

 Peterhouse Capital Limited

 Lucy                                                                                                             +44 (0) 20 7469 0930
 Williams

                                                                                                                +44 (0) 20 7220 9797
 Duncan Vasey

                                                                                                                +44(0) 207 129 1474
 Flagstaff Strategic and Investor Communications

                                                                                                                pennpetro@flagstaffcomms.com
 Tim Thompson

 Alison Allfrey

 Anna
 Probert

 

 

 

 

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 100% Working
Interest in 2,036.38 acres in Gonzales County in Texas. These acres include
the Whistling Straits #5 well and the Chalk Talk #1H and #4H wells. Noble also
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.

 

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