REG - Pennpetro Energy PLC - Texas Oil Continues to Flow

Pennpetro EnergyAnnouncement

15/04/2024 07:00

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RNS Number : 5289K  Pennpetro Energy PLC  15 April 2024

Pennpetro Energy Plc

 

Texas Oil Continues to Flow

London, 15 April 2024 - Pennpetro Energy PLC (LSE: PPP) ("Pennpetro" or the
"Company"), the independent oil and gas company focusing on development and
production in the Peach Creek (Austin Chalk) Oil Field in Gonzales County,
Texas, USA, is pleased to announce that oil production continues from its
Chalk Talk #1H ("CT1H") well and provides an update on plans to potentially
bring Whistling Straits 5H well on to test production.

 

Since the last regulatory news release updating shareholders on the 25(th)
March 2024, the company advises that oil sales revenues continue from CT1H and
net oil sales (gross minus taxes and royalties) for February totalled
US$48,470.26 and the Company expects to bank another US$37,083.16 around the
21 April for March's oil production, which was curtailed by intermittent pump
and generator issues.  Working with our partners these issues have now been
resolved and we look forward to a full current month of production, we are
currently on track to see revenues above US$45,000.00 per month once again.

 

The Whistling Straits 5H well in the Peach Creek Oil Field in Gonzales County
is a very important asset of Pennpetro since it acquired 100% of the well from
Millennium PetroCapital Corporation ("Millennium") in July of 2023.  The well
hit significant oil and gas shows in April 2023, whilst the new lateral
sidetrack was being drilled by Millennium, the operator.  It was reported
that good oil shows were encountered on the rig's skimmer tanks from 8,120
feet over numerous extended intervals and numerous gas flares occurred. Gas
was registering between 129-226 units of gas including C1 through to C4.
ultimately the drilling fluids were never properly recovered and hence the
well was never properly put to test.

 

Millennium (as operator at the time) never actually completed the work to pump
out the well's circa 10,000 barrels of drilling fluids prior to Pennpetro
acquiring the 100% working interest in the well.

 

The Company is now assessing the best method to pump out these drill fluids
and finally bring the well on to test.

 

Tom Evans, Pennpetro Energy's CEO said:

 

"Production continues to bring in revenues from our Chalk Talk 1H well in
Texas and revenues are positively impacted with the steady rise in the oil
price in Texas over recent months and oil prices now sitting above US$90 a
barrel. We are optimistic that the next well intervention at the CT1H well
will have a positive impact on future production levels and profitability, but
this work plan is still being worked up and should hopefully be done this
quarter. I'm also excited to see what the real oil potential is for the
Whistling Straits 5H well as this well was a new sidetrack drilling into a
fresh new formation and not a workover like CT1H. We know there were strong
oil and gas shows when we drilled the sidetrack back in April last year and
now that we own 100% working interest in this well, we are eager to pump out
the 10,000 barrels of drill fluid which should only take about two weeks when
we do get around to putting the well on to pump. I look forward to updating
shareholders as our expansion plans progress during this quarter."

 

-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 X @pennpetro or contact:

 

 

 Pennpetro Energy PLC:                                                                                      tme@pennpetroenergy.com (mailto:tme@pennpetroenergy.com)

 Tom Evans, CEO

 David Lenigas, Chairman                                                                                    +44 (0) 7881825378

                                                                                                            lenigas@monaco-capital.com
 Brokers:                                                                                                   +44 (0) 207 614 5900

 Zeus Capital

 Simon Johnson
 Peterhouse Capital Limited                                                                                 +44 (0) 20 7469 0930

 Lucy                                                                                                       +44 (0) 20 7220 9797
 Williams

 Duncan Vasey

                                                                                                          +44(0) 207 129 1474

                                                                                                          pennpetro@flagstaffcomms.com
 Flagstaff Strategic and Investor Communications

 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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