Pennpetro Energy PLC - Texas Oil Continues to Flow

Source: 4/15/2024, Location: North America

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 25th 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."

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