Pennant Energy Inc.

Pennant Energy Inc.

February 28, 2005 14:48 ET

Pennant Commences Drilling on Kaybob Well


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PENNANT ENERGY INC.

TSX VENTURE SYMBOL: PEN

FEBRUARY 28, 2005 - 14:48 ET

Pennant Commences Drilling on Kaybob Well

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2005) - Pennant
Energy Inc. (TSX VENTURE:PEN) ("PEN") is pleased to announce that
drilling has commenced on the Kaybob 15 - 30 - 66 - 19W5 well (Goose
River project) in west-central Alberta. The terms of the farmout
agreement call for Pennant to contribute 18% of the costs to drill and
complete a test well at the above location to earn a reversionary
working interest of 18% before payout (BPO) reverting to 10.8% after
payout (APO) subject to BPO gross overriding royalties in the test well
and the option to participate at the APO working interest in 2 or more
wells on earned lands.

Proprietary 2-D seismic shows the acreage contains an amplitude anomaly
in the Notikewan and Triassic sands. The location is two miles north of
the Kaybob gas field. If successful, this project may have a total
upside target potential of recovering 24 billion cubic feet of gas and
three million barrels of oil. This initial well has a projected total
depth of 5,900 feet (1,800 metres).

Pennant's Meekwap test well at 9 - 29 - 66 - 15 W5M in Northern Alberta
has been perforated, stimulated and is being swabbed for oil. The well,
after giving up drilling and completion fluids (water and acid), is
swabbing oil at rates consistent with expectations when the well was
planned. Actual output rates will be reported as soon as available.

The terms of the farmout agreement required Pennant to contribute 8% of
the costs to drill and complete a test well at the above location to
earn a reversionary working interest of 8% before payout (BPO) reverting
to 4% after payout (APO) in the test well and 160 acre spacing unit
subject to BPO gross overriding royalties payable to the Farmor.
Subsequent to satisfying the earning conditions of the agreement Pennant
will hold a 3% working interest in the balance of the lands.

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

Mr. Thomas Yingling, President - Director

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Pennant Energy Inc.
    Mr. Thomas Yingling
    President - Director
    (604) 689-1799
    (604) 689-8199 (FAX)
    TOM@pennantenergy.com
    www.pennantenergy.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.