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Pennpetro Energy says drilling contractor engaged for Texan oil wells

22nd Jul 2024 16:43

(Alliance News) - Pennpetro Energy PLC on Monday said that Globalvision International has booked a Houston-based drilling contractor to start work on the oil wells in Gonzales County, Texas in early August.

Texas-focused oil and gas company Pennpetro signed a deal with energy trading firm Globalvision International to sell its shares in Texas Nobel USA Inc last week. In return, Pennpetro gets a life of asset through a 12.5% overriding royalty interest on Texan oil wells and a 10% profit share on any other wells drilled or developed within Pennpetro's 2,036 acres in Texas.

Globalvision now has engaged drilling contractor J&J Drilling International LLC, Pennpetro said on Monday.

The Texan wells comprise the City of Gonzales #1 well, Chalk Talk #1 well, Chalk Talk #4 well and Whistling Straits #5 well in Gonzales.

Pennpetro's chief executive officer, Tom Evans, said: "As previously announced, both parties are working well together to complete all the documentation required to close this important transaction for Pennpetro by month's end, and I'm very pleased to inform shareholders that Globalvision have informed me that they have now booked their drilling contractor for the Texas oil production operations".

Pennpetro Energy shares closed up 7.4% at 2.68 pence in London on Monday afternoon.

By Lydia Doye, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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