Pennpetro Energy, an independent oil and gas company focusing on production and development in Gonzales County, Texas, USA, through its 100% subsidiary, Nobel Petroleum USA Inc., has now completed the legal processes in Texas to complete the transaction with Millennium PetroCapital Corporation, as announced on 27 June 2023, to increase its stake in the Whistling Straits 5H well from a 25% working interest ('WI') to a 100% WI with 75% net revenue interest ('NRI') and to assume operatorship of the well with immediate effect in addition to 2,036.38 acres of oil leases.
Highlights
- Completion of acquisition of 100% Working Interest and operatorship in Whistling Straits #5H well
- 100% acquisition of 10 tracts, increasing Gonzales footprint by 2,036.38 acres
- Giving exclusive rights to 100% WI in two other adjacent developed wellbores (Chalk Talk #1H & #4H)
- Engineering studies to commence to bring back on the City of Gonzales #1 well which Pennpetro drilling in 2018 and shut-in in 2020
- Company fully funded to bring all wells into near-term production
Tom Evans, Pennpetro Energy's CEO said:
'Pennpetro has fortuitously gone from having a minority interest in just the Whistling Straights #5 well, to now having operatorship and a 100% interest in four (4) potential oil production wells in Gonzales County in Texas. This is a big game changer for the Company.'
'Yesterday we completed the legal transfer of the oil assets in Texas with Millennium, giving Pennpetro the operatorship of the Whistling Straits #5H well and access to 100% working interest in two nearby oil wells. Over the coming weeks and months, the Company will be working with its management and consultants to bringing the Chalk Talk #1H and #4H wells back online, flow testing the Whistling straits 5H well and potentially bring back online the 100% owned City of Gonzales #1 (COG #1) well that Pennpetro was forced to shut in over the Covid period.'
'Chalk Talk wells initial production rates ranged from 100-400 barrels of oil per day, so we are optimistic that we could see the Chalk Talk #1H and #4H wells providing PPP with some good oil production numbers in future. The recent placings have also brought forward the possibility of us putting our COG #1H well back into production since it was shut-in over the Covid period.'
'As we previously reported, Millennium, the previous Operator of Whistling Straights #5H well unsuccessfully installed a jet pump to clean up the well and until now has yet to recover all the load water used during drilling and completion, from the well. Our plans are to change to an electrical submersible pump (ESP), which has the benefits of having a positive displacement pump, to recover the remaining drill fluids to surface and bring on the oil.'
Source: PennPetro Energy
