REG - Pennpetro Energy PLC - First Oil Production from Well in Texas

Pennpetro EnergyAnnouncement

30/10/2023 07:15

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RNS Number : 6243R  Pennpetro Energy PLC  30 October 2023

Pennpetro Energy PLC

("PPP" or "Pennpetro")

 

First Oil Production from PPP's Chalk Talk 1H Well in Texas

Highlights:

 

·      Workover completed of PPP's 100% owned Chalk Talk #1H well in
Texas.

·      Test production currently stable at 35 barrels of fluid per hour
(840 barrels of fluid per day)

·      First oil already produced to the tanks.

·      Full production is scheduled to commence this week.

 

London, 30 October 2023 - Pennpetro Energy PLC (LSE: PPP), an independent oil
and gas company focusing on development and production in the Peach Creek
(Austin Chalk) Oil Field in Gonzales County, Texas, USA, advises that further
to its RNS dated 8 September 2023, it has now completed the workover of the
Company's new 100% owned Chalk Talk #1H ("CT1H") well and the well has
successfully been put on to test production with full time production expected
later this week.

 

At the CT1H well, the workover rig successfully pulled the old production
tubing, cleaned the well of blockages, and run a new Electric Submersible Pump
("ESP") with production tubing run to a depth of 7,597' Measured Depth. The
workover rig demobilized from site on 22 October.

 

The ESP was commissioned on Tuesday 24 October and produced about 500 barrels
of fluid to temporary tanks at the CT1H well site over the first 15-hour
period before being shut in, as the surface tanks on site installed for the
pump tests had surprisingly reached capacity.

 

The flow line from the CT1H well was then connected the following day (25
October) to the surface facility at its Whistling Straits 5H ("WS5H") well
pad.

 

Flow rates, when the well is on pump, appear to be stabilizing at around 35
barrels of fluid per hour (840 barrels of fluid per day). While it is too
early to determine the water cut, the company expects it to be close to fifty
percent, based on historical production from the well and initial indications
appear to support this. The company will report a more accurate assessment on
water cut once full production to the facilities has been stabilized over the
course of the next few weeks.

 

Tom Evans, Pennpetro Energy's CEO said:

 

"The workover of our new 100% owned Chalk Talk 1H well in Texas has gone
exceptionally well. We continue to run the ESP pump on test as we complete the
commissioning of our surface facilities at both the CT1H well site and the
storage facilities at Whistling Straits, just 1,000 feet away, in preparation
for permanent production later this week."

 

"With respect to having Pennpetro Energy's shares trading again on the London
Stock Exchange, I advise that the Company is working diligently to have its
audited accounts, as published on 20 October, reformatted and uploaded onto
the FCA's National Storage Mechanism, which is now a requirement to
re-trading. When we do come back to trade though, it will be highly gratifying
to see Pennpetro begin trading as an actual oil producer, something that was
sadly stopped in its tracks when forced to shut in our City of Gonzales #1
well due to Covid in 2020."

 

 

-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 (mailto:tme@pennpetroenergy.com)

 David Lenigas, Chairman                                                                                          +44 (0) 7881825378

                                                                                                                  lenigas@monaco-capital.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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