| Investors looking for Alberta energy
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| | forty-five years in the oil and gas
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| stocks would do well to notice Pennant
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| | exploration and development business.
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| Energy Inc. [TSXV: PEN] a promising oil
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| | During his notable career, he has been
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| and gas firm that trades on the TSX
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| | instrumental in successfully
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| Venture Exchange. This company enjoys
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| | commercializing over four hundred and
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| good cash flow from 15- 45 % interest in
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| | thirty oil and gas wells, some of which
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| eight oil wells in Manitoba's Daly Field,
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| | are still abundant producers. Jim Britton
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| producing medium grade crude from the
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| | has a remarkable track record of drilling
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| Lodgepole and Bakken formations. These
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| | 86% commercially successful wells. He was
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| wells come on strong and then plateau for
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| | the man who engineered Dynamic Oil & Gas,
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| decades - all are in the plateau stage
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| | Inc's growth from 25 barrels of oil
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| now and only 4 years old. Pennant's
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| | equivalent a day (boepd) to over 5,000
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| Manitoba Properties provide the cash fuel
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| | boepd.
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| that helps propel this company's Alberta
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| | But drilling for oil is risky business.
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| explorations, and that's a good business
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| | In the spring of 2007, the company's
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| model in any oil patch.
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| | share price rose to a record $1.07 in on
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| On paper, Pennant Energy is a solid
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| | anticipation of the results of testing on
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| performer. The company has no debt and
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| | Pennant's Kaybob S#1 Project. The
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| approx $1,500,000 in the bank. The $0.40
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| | company's stock dropped again two months
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| cent share price seems compacted - with
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| | later when Yingling announced "the
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| only 16,164,809 shares outstanding and
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| | absence of hydrocarbons in commercial
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| only 21,255,938 fully diluted, it's a
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| | quantities led to the abandonment of this
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| tightly packed structure. This firm has
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| | technically challenging $3-million-plus
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| $900,000 in flow through funds to spend
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| | well."
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| before the end of the year, and they need
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| | There was an upside, however. Pennant's
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| to spend that money in the ground.
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| | business model works: All of Pennant's
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| When I spoke to President Thomas Yingling
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| | financial risk was absorbed by Austin
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| on the phone recently, he confirmed that
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| | Developments Corp., which paid 100% of
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| both his team and his land positions are
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| | the costs of the drilling in return to
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| growing. Pennant is looking to acquire
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| | earn a 50% interest in the venture. By
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| more oil production in Alberta, and is
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| | adhering to a finely balanced risk/reward
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| presently considering which of three
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| | model, and refueling from their Manitoba
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| large-scale drilling it will commence in
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| | wells, Pennant managed to keep its
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| the short term. Yingling categorized all
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| | treasury of over $1,500,000 relatively
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| three of these options as, "drill-ready,
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| | intact and still remains debt free.
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| farm-in opportunities for us to drill
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| | Just last month, together with Austin
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| before year end. Each of these projects
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| | Developments Corp. (TSX: AUL), Pennant
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| is between one and half and three million
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| | Energy expanded its Bronson Property land
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| dollars which we consider to be low risk,
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| | holdings by successful bidding at a
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| high-return, drill-ready projects. So
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| | September 19th, 2007 Alberta Crown Land
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| we're about to move on one of them.'
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| | Sale. The Bronson Property is now
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| Another encouraging aspect about Pennant
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| | sub-divided as Bronson East and Bronson
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| Energy is the strong share position held
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| | West with the east portion being the
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| by management. Yingling, for example,
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| | newly acquired 640 acre contiguous
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| personally holds 1.3 million shares of
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| | property located south east of the
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| the company and can therefore be expected
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| | existing Bronson West. Positive results
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| to energetically pursue growth. These
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| | from a Geochem survey and a 3D seismic
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| include "increasing shareholder wealth by
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| | survey have identified several potential
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| targeting opportunities that offer the
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| | drill targets on the 640 acre Bronson
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| promise of accelerated oil production
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| | East site.
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| with a fast payback," and simultaneously
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| | Yingling says the team has everything in
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| expanding "participation in low-risk
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| | place to potentially drill a
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| developmental drilling projects that
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| | company-maker in Alberta this winter.
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| provide enough cash flow to mitigate the
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| | With a $0.40 share price, undiluted share
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| need to seriously dilute the company's
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| | structure and record oil prices, Pennant
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| much-envied share structure."
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| | offers a rare opportunity to participate
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| A seasoned venture capitalist, Thomas
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| | in a ground-floor opportunity of a
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| Yingling was appointed President of
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| | well-managed and highly ambitious
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| Pennant Energy on June 25, 2003. Mr.
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| | (producing!) oil & gas junior.
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| Yingling has also served for over a
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| | This article is intended for information
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| decade as the President of Brahma
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| | purposes only, and is not a
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| Communications Corp., an
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| | recommendation to buy or sell the
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| investment-consulting firm that
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| | equities of any company mentioned herein.
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| specializes in corporate finance,
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| | It is based on sources believed to be
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| investor relations and strategic
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| | reliable, but no warranty as to accuracy
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| corporate planning for publicly traded
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| | is expressed or implied. The opinions
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| companies. In restructuring Pennant
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| | expressed in the article are those of the
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| Energy, he brought James Britton, P.
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| | author except where statements are
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| Geol. P. Eng. out of a comfortable
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| | attributed to individuals other than the
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| retirement to serve as the firm's Senior
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| | author, in which case the opinions are
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| Geologist / Engineer and sit on the board
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| | those of the individual to whom they are
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| as one of the Company Directors.
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| | attributed.
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| Britton's wealth of experience spans over
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|
