Pennant Energy Inc.
TSX VENTURE : PEN

Pennant Energy Inc.

September 27, 2005 13:58 ET

Pennant Commences Two Well Drill Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 27, 2005) - Pennant Energy Inc. (TSX VENTURE:PEN) ("PEN") is pleased to announce that as per the September 20, 2005 news release, the two well drill program in the Daly Field, Manitoba, has commenced. Pennant has an agreement with Rideau Petroleums Ltd, a privately held company, to drill up to eight development wells in the Daly field. To date five wells have successfully been drilled, cased, completed and are producing oil. The Daly field is located in Townships 09 and 10, Range 29 WM, approximately 65 miles southwest of Brandon, Manitoba. The operator of the drill program, Rideau Petroleums Ltd., currently operates over 120 wells in over 5100 gross leasehold acres within the Daly field. Rideau ranked 6th out of the top 25 operators in the province in 2002. Pennant will contribute 25% of the costs to drill, complete and equip the wells to earn a 22.5% working interest before payout, reverting to 15% working interest after payout. The wells are targeting both the Lodgepole and Bakken formations.

The Company is still awaiting a drill rig to drill our second well on our joint ventured Meekwap, Property in Northern Alberta. Pennant has an option to drill up to seven more wells on the Meekwap Property.

Thomas Yingling, president of PEN stated, "We are pleased with the 100% success rate that we have realized in our joint venture with Rideau. Pennant is now producing from six wells located throughout Manitoba and Alberta. We are currently debt free, well financed, have a positive cash flow, and just over ten million shares issued. We are about to embark on two exciting drill programs located in Manitoba and Alberta during times of record oil and gas prices. With our treasury growing each month we are in a strong position and are negotiating on several exciting projects."

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

Mr. Thomas Yingling, President - 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.


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

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