19th Jul 2023 10:53
(Alliance News) - Pennpetro Energy PLC on Wednesday said it has increased its interest in the Whistling Straits 5H well in Gonzales County, Texas to 100% from 25%.
The oil and gas company focusing on production and development in Gonzales County, Texas said it completed the transaction with Millennium PetroCapital Corp, as announced late June, after the completion of legal processes.
Pennpetro Energy now has a 100% working interest at the Texas well with 75% net revenue interest.
No financial details were disclosed on the transaction.
It will assume operatorship of the well with immediate effect, the company said, in addition to just over 2,036 acres of oil leases.
"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 potential oil production wells in Gonzales County in Texas. This is a big game changer for the company," said Chief Executive Officer Tom Evans.
"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 well that Pennpetro was forced to shut in over the Covid period."
Shares in Pennpetro Energy were flat at 1.85 pence each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News reporter
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