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On the cusp of victory in the oil patch

Bob Moriarty
Archives

May 12, 2008

The very best time to be buying any junior is just as they are about to go into production. Thatís just as true of energy juniors as of precious metals juniors.

A couple of weeks ago I shot up to Chicago to speak at the Chicago Resource Expo put on by Rich Radez. One of my favorite energy juniors was there with big news.

Pennant Energy (PEN-V) has a joint venture in place on the Pembina oil field in Northern Alberta with Highpine Oil and Gas. The latest well, Pembina 16-29 has been cased and is in the process of being tested. Results could come at any time. Pennant has a 24% interest in the well.

Similar wells located in the Nisku area produce 1000-1400 barrels day oil. If the well came in at the lower of the figures, 1000 barrels a day, Pennantís share would be 240 barrels a day. At the higher number, Pennantís share would be 336 barrels a day.

With oil running over $126 a barrel, a BOE of production should be worth over $60,000. So if the well comes in at about the same level as similar wells in the area, the value to Pennant should be between $14.4 million to $21.1 million.

Pennant has a present market cap of $7.67 million with an addition interest in 8 producing wells. This makes Pennant a very low risk, high potential return bet.

Best of all, you donít have to wait years to find out. The results will be out shortly.

Pennantís ace in the hole, as it were, is the presence of Jim Britton as head of exploration. With an 86% success rate on drilling wells, Mr Britton brings a lot of experience to Pennant. He has over 40 years experience in the oil patch.

Pennant Energy is an advertiser and I do own shares. I am biased and you should do your own due diligence.

Pennant Energy Inc
PEN-V $.465 (May 9)
PENFF-OTCBB
16.5 million shares
Pennant Energy website

 

Bob Moriarty
President: 321gold/321energy
Archives

321gold Ltd


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November 21st, 2017

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