Pennpetro successfully drills Whistling Straights well in Gonzales County, Tx
(WO) 鈥 Pennpetro Energy PLC, an independent oil and gas company focusing on production and development in Gonzales County, Texas, announced that drilling operations have progressed smoothly on the Whistling Straits well with the drill bit now being at a vertical target depth of -7,303 ft. TVDSS and has now commenced drilling the planned 4,800 ft. lateral within the Austin Chalk target interval.
The Whistling Straights well has been renamed the 鈥淲histling Straits #5H鈥 well (previously referred to as the 鈥淲histling Straits #1H well) and is the first well under its recently signed Participation, Development and Option Agreement between Pennpetro鈥檚 100% owned subsidiary, Nobel Petroleum USA Inc, and Millennium PetroCapital Corporation (鈥淢illennium鈥) within the 250,000 acre Area of Mutual Interest (鈥淎MI鈥) petroleum joint venture in Gonzales County, Texas.
Tom Evans, Pennpetro鈥檚 CEO, commented, 鈥淚 am very pleased with the progress made this week with drilling our first development well in the Peach Creek Oil Field in partnership with Millennium. We are now drilling fresh ground in the Austin Chalk horizontal side-track heading towards the primary oil target.鈥
Andy Clifford, Nobel鈥檚 President, said, 鈥淲e are targeting the heart of an interpreted microfracture swarm within the Austin Chalk, identified by cutting-edge 3D reprocessing and interpretation coupled with analysis of regional well results in preparation for drilling the well, best positioning the well to deliver the highest potential production from naturally-occurring fractures.鈥
The Gonzales County 250,000 acre AMI is located about 140 miles due west of Houston and will provide PPP鈥檚 Nobel with a large inventory of low risk development options in a world class oil field.
Nobel is paying 33.33% of the cost to drill and complete this joint development well connected to the storage tanks for a net 25% working interest (18.75% net revenue interest) as well as a prospect fee which covers sunk costs relating to leasing, land, legal, 3D seismic licensing, geological and geophysical analysis.