Pennant Energy Inc.
TSX VENTURE : PEN

Pennant Energy Inc.

January 20, 2010 11:43 ET

Pennant Increases Production

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 20, 2010) - Pennant Energy Inc. (the "Company") (TSX VENTURE:PEN); the Company is pleased to announce that cash flow from operations increased significantly during the second quarter after a disappointing first quarter beginning to the 2009-2010 fiscal period. The poor first quarter showing felt the impact of low gas prices, compounded by an almost six week shut-in of the Badger property due to production allowable restrictions imposed by the ERCB. The Badger resumed full operation in September and was joined by the newly completed Ferrier well, as was announced in our September 17, 2009 press release. The Company's Alberta properties have been operating smoothly since September, 2009 and with the addition of the Ferrier well, average monthly cash flow from operations has almost tripled, despite soft gas prices. The Company current working interest production is approximately 100 boe/day, with another approx. 181 boe/day drilled and tested awaiting tie-in at our Pembina 102/16-29-048-08W5/00.

The Company is currently reviewing two drilling opportunities which, contingent upon finalizing mutually acceptable agreements terms, may be spud within the current quarter.

ON BEHALF OF THE BOARD OF DIRECTORS OF PENNANT ENERGY INC.

Mr. Jim Britton, P. Geol. - Director

This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.

BOEs may be misleading, particularly when used in isolation. A BOE conversion ratio of 6Mcf: 1 bbl is based on energy equivalency conversion method primarily applicable at the burner tip and does not present a value equivalency at the wellhead.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pennant Energy Inc.
    Mr. Jim Britton, P. Geol.
    Director
    604-689-1799
    604-689-8199 (FAX)
    www.pennantenergy.com