First Oil Production from Well in Texas

Pennpetro Energy PLC

30 October 2023

 

Pennpetro Energy PLC

("PPP" or "Pennpetro")

First Oil Production from PPP's Chalk Talk 1H Well in Texas

Highlights:

·      Workover completed of PPP's 100% owned Chalk Talk #1H well in Texas.

·      Test production currently stable at 35 barrels of fluid per hour (840 barrels of fluid per day)

·      First oil already produced to the tanks.

·      Full production is scheduled to commence this week.

London, 30 October 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 further to its RNS dated 8 September 2023, it has now completed the workover of the Company's new 100% owned Chalk Talk #1H ("CT1H") well and the well has successfully been put on to test production with full time production expected later this week.

At the CT1H well, the workover rig successfully pulled the old production tubing, cleaned the well of blockages, and run a new Electric Submersible Pump ("ESP") with production tubing run to a depth of 7,597' Measured Depth. The workover rig demobilized from site on 22 October.

The ESP was commissioned on Tuesday 24 October and produced about 500 barrels of fluid to temporary tanks at the CT1H well site over the first 15-hour period before being shut in, as the surface tanks on site installed for the pump tests had surprisingly reached capacity.

The flow line from the CT1H well was then connected the following day (25 October) to the surface facility at its Whistling Straits 5H ("WS5H") well pad.

Flow rates, when the well is on pump, appear to be stabilizing at around 35 barrels of fluid per hour (840 barrels of fluid per day). While it is too early to determine the water cut, the company expects it to be close to fifty percent, based on historical production from the well and initial indications appear to support this. The company will report a more accurate assessment on water cut once full production to the facilities has been stabilized over the course of the next few weeks.

Tom Evans, Pennpetro Energy's CEO said:

"The workover of our new 100% owned Chalk Talk 1H well in Texas has gone exceptionally well. We continue to run the ESP pump on test as we complete the commissioning of our surface facilities at both the CT1H well site and the storage facilities at Whistling Straits, just 1,000 feet away, in preparation for permanent production later this week."

"With respect to having Pennpetro Energy's shares trading again on the London Stock Exchange, I advise that the Company is working diligently to have its audited accounts, as published on 20 October, reformatted and uploaded onto the FCA's National Storage Mechanism, which is now a requirement to re-trading. When we do come back to trade though, it will be highly gratifying to see Pennpetro begin trading as an actual oil producer, something that was sadly stopped in its tracks when forced to shut in our City of Gonzales #1 well due to Covid in 2020."

-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