27th Jun 2023 18:51
Pennpetro Energy PLC - North America-focused production company - Signs deal with Millennium PetroCapital Corp to boost stake in Whistling Straits 5H well to 100%, from 25%, as well as a 75% net revenue interest. Will pay USD70,000, in addition to original well commitment costs, to Millennium, plus USD10,000 per month rent of existing production facilities. In addition, has the exclusive right to acquire a 100% working interest in two nearby Chalk Talk wells. Pennpetro also raises GBP300,000, at 2 pence per share. Says portion will come through placing of 6.0 million new shares. Also adds 9.0 million existing shares will be included, "in order to settle the placing in a timely manner". Those shares are held by existing shareholders unconnected to any director.
"This is an amazing deal for Pennpetro, and we are delighted to have taken over operatorship of the Whistling Straits 5H well in Texas," Chief Executive Tom Evans says.
Current stock price: 2.06p, down 20% on Tuesday
12-month change: down 88%
By Eric Cunha, Alliance News news editor
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