REG - Pennpetro Energy PLC - Tunisia Update

Pennpetro EnergyAnnouncement

21/11/2022 07:00

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RNS Number : 9847G  Pennpetro Energy PLC  21 November 2022

 

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This announcement is not an offer for sale, or a solicitation of an offer to
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Pennpetro Energy PLC

("Pennpetro", the "Company" or the "Group")

 

Tunisia Update

 

London, 21 November 2022 - Pennpetro Energy PLC ("Pennpetro"), an independent
oil and gas company focusing on production in the Gonzales Oil Field in Texas,
USA, notes the RNS announcement issued on 18 November by Upland Resource PLC's
("Upland") stating the termination of the farm-in agreement into Upland's
Saouaf permit area in Tunisia ("Saouaf Permit"). The Saouaf Permit is held in
joint venture with the Tunisian state oil company, Enterprise Tunisienne
d'Activités Pétroliéres ("ETAP").

 

As outlined in the announcement by Upland of 15 September 2022, a final
deadline of 5 November 2022 had been set by way of a Formal Notice dated 5
September 2022 received from the Ministry of Industry Mines and Energy of
Tunisia. The Notice requested the replacement by Upland of an expired bank
guarantee of US$1M on or before 5 November 2022. Under the terms of the Farm
Out Agreement (FOA) with Pennpetro, announced on 21 July 2022, Pennpetro is
responsible for meeting the financial obligations associated with the license
extension conditional upon both Pennpetro and the Tunisian authorities being
satisfied with the result.

 

Since the announcement issued on 21 July 2022, the Board of Pennpetro has been
awaiting confirmation from its Upland counterparts that the expired bank
guarantee has been replaced, enabling Pennpetro to move forward with its plans
for the near-term development of the Saouaf Permit. However, the Pennpetro
Board received neither confirmation that the bank guarantee had been replaced
by the Upland Board or confirmation that the deadline had not been met by
Upland. The implications of this failure to replace the expired bank guarantee
by Upland on Pennpetro's proposed farm-in was also not disclosed.

 

Andy Clifford, President of Pennpetro's wholly owned subsidiary, Nobel
Petroleum USA Inc. ("Nobel"), commented:

 

"Despite this temporary setback, we remain committed to growing our business
in Tunisia. Nobel views the available opportunities in Tunisia as
complementary and synergistic to our Texas Gulf Coast developments and
maintain an interest in the Saouaf Permit should it become available again in
the near future. Not only are we looking at reservoirs with the same lithology
as the Austin Chalk but also of the same geologic age. Furthermore, the
application of leading-edge technology with respect to the Tunisian play is
even further behind the Texas Gulf Coast.

 

While the major oil companies long ago left the Gulf Coast conventional plays
to focus on unconventional targets, many of the smaller independents who
inherited the assets chose not to undertake detailed 3-D seismic analyses,
detailed formation evaluation utilizing more sophisticated logging or take
core samples, all of which can help with a better understanding of the
reservoir and enhance oil recoveries.  Nobel, through its recently announced
joint ventures in Texas such as with Millennium in Gonzales County, is taking
steps to address this deficiency and sees enormous potential for a similar
approach in Tunisia.

Tunisia has an attractive suite of under-explored and under-developed
opportunities. Nobel has developed an excellent network of contacts in country
following our recent visit and we are evaluating a number of exciting
opportunities there. Our technical team has many years of experience operating
in Tunisia for other companies. Tunisia also has an attractive fiscal regime
as well as underutilized gas infrastructure, well-positioned to service
shortfalls in Europe to which it is already connected through the TransMed gas
pipeline. While our near-term focus is on oil, we will be targeting gas
opportunities in Tunisia and the US for the mid- to long-term."

 

-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.co.uk (about%3Ablank)

 Arden Partners Plc
 Simon Johnson               +44 (0) 207 614 5900
 Ruari McGirr

 Peterhouse Capital Limited
 Lucy Williams               +44 (0) 20 7469 0930
 Duncan Vasey                +44 (0) 20 7220 9797

 Instinctif Partners
 Galyna Kulachek             pennpetro@instinctif.com (about%3Ablank)
 Sarah Hourahane             +44 (0) 20 7457 2020

 

 

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.

 

Further information on the Company can be found at www.pennpetroenergy.co.uk
(about%3Ablank)

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