Chalk Talk 1H Well Texas Production Update

Pennpetro Energy PLC

14 November 2023

 

Pennpetro Energy PLC

("PPP" or "Pennpetro")

Pennpetro Announces Oil Production Update on Chalk Talk 1H Well

Highlights:

·      First full week of test production from Chalk Talk #1H well sees consistent oil production.

·      Oil production of 794 barrels for the week or 113 barrels of oil per day average.

·      Workover rig for PPP's Chalk Talk #4H well still on track for early December.

·      Transport and oil sales agreement signed that sees PPP being paid on the 20^th day after the end of every month.

London, 14 November 2023 - Pennpetro Energy PLC (LSE: PPP), an independent oil and gas company focusing on development and production in the Peach Creek (Austin Chalk) Oil Field in Gonzales County, Texas, USA, advises that the Company's 100% Chalk Talk #1H ("CT1H") well has completed its first full week of test production, since the workover rig demobilized from the well site and the sites were fully commissioned, with a total of 794 barrels of 33 API oil for an average of 113 barrels of oil per day ("bopd").

Current production levels are significantly above the well's July 2022 shut in rate of around 15-20 bopd. This increase can be put down to the workover rig successfully cleaning out a number of bridge plugs (or blockages) below the bottom of the casing.

Tom Evans, Pennpetro Energy's CEO said:

"Our Chalk Talk 1H well in Texas is continuing to perform very well and shows excellent flow rates with last week's test production averaging 113 barrels of oil per day."

"Our US Nobel Petroleum Team have also managed to secure a transport and sales contract that will see oil sold from our Whistling Straits oil facilities paid for on the 20^th day after the end of every month."

"The workover rig is still due to arrive at PPP's 100% owned Chalk Talk #4H well in early December and we look forward to having two wells feeding into the Whistling Straits facilities by year end."

Qualified Person's Statement:

Deane Pierce, Nobel's Executive Vice President Engineering, who has 45 years of relevant experience in the global oil industry, has approved the information contained in this announcement. Mr. Pierce graduated with a BS Mechanical Engineering from Texas Tech University, has an MBA Finance from Dallas Baptist University and is a Registered Petroleum Engineer #56733. Mr. Pierce also has numerous industry publications dealing with drilling and production optimization with an emphasis on horizontal completion and inflow control.

-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.

For further information visit www.pennpetroenergy.co.uk or follow us on twitter @pennpetro or contact:

Pennpetro Energy PLC: Tom Evans, CEO David Lenigas, Chairman	[e-mail] [phone] [e-mail]
Brokers: Zeus Capital Simon Johnson	[phone]
Peterhouse Capital Limited Lucy Williams                                                    Duncan Vasey   Flagstaff Strategic and Investor Communications Tim Thompson Alison Allfrey Anna Probert	[phone] [phone] [phone] [e-mail]

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 with the ticker symbol "PPP".

Its wholly owned subsidiary, Nobel Petroleum USA Inc. has a 100% Working Interest in 2,036.38 acres in Gonzales County in Texas. These acres include the Whistling Straits #5 well and the Chalk Talk #1H and #4H wells. Noble also has a Participation, Development and Option Agreement and Joint Operating Agreement with Texas based Millennium PetroCapital Corporation over a 250,000-acre Area of Mutual Interest in Gonzales County, Texas, aimed at exploiting the prolific proven Austin Chalk oil and gas play. Pennpetro Energy has also recently signed a conditional binding agreement to conduct a new 3D seismic survey on the Horse Hill Oil Field near London's Gatwick Airport which paves the way to drilling the next production well (HH-3) for 49% of the revenue of this proposed well.

 

END