REG - Pennpetro Energy PLC - Drilling Ahead in Primary Target Horizontal Level

Pennpetro EnergyAnnouncement

05/04/2023 07:30

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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                                                                                                   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
 Media and Investor Relations:

 Instinctif
 Partners

                                                                                                                pennpetro@instinctif.com
 Galyna Kulachek

                                                                                                                +44 (0) 20 7457 2020
 Isadora Pegler

 

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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