Pennant Energy Boasts Solid Performance, Considers New Prospects

Investors looking for Alberta energy stocks would doBritton's wealth of experience spans over forty-five
well to notice Pennant Energy Inc. [TSXV: PEN] ayears in the oil and gas exploration and development
promising oil and gas firm that trades on the TSXbusiness. During his notable career, he has been
Venture Exchange. This company enjoys good cashinstrumental in successfully commercializing over four
flow from 15- 45 % interest in eight oil wells inhundred and thirty oil and gas wells, some of which
Manitoba's Daly Field, producing medium grade crudeare still abundant producers. Jim Britton has a
from the Lodgepole and Bakken formations. Theseremarkable track record of drilling 86% commercially
wells come on strong and then plateau for decades -successful wells. He was the man who engineered
all are in the plateau stage now and only 4 years old.Dynamic Oil & Gas, Inc's growth from 25 barrels of
Pennant's Manitoba Properties provide the cash fueloil equivalent a day (boepd) to over 5,000 boepd.
that helps propel this company's Alberta explorations,But drilling for oil is risky business. In the spring of
and that's a good business model in any oil patch.2007, the company's share price rose to a record
On paper, Pennant Energy is a solid performer. The$1.07 in on anticipation of the results of testing on
company has no debt and approx $1,500,000 in thePennant's Kaybob S#1 Project. The company's stock
bank. The $0.40 cent share price seems compacted -dropped again two months later when Yingling
with only 16,164,809 shares outstanding and onlyannounced "the absence of hydrocarbons in
21,255,938 fully diluted, it's a tightly packed structure.commercial quantities led to the abandonment of this
This firm has $900,000 in flow through funds totechnically challenging $3-million-plus well."
spend before the end of the year, and they need toThere was an upside, however. Pennant's business
spend that money in the ground.model works: All of Pennant's financial risk was
When I spoke to President Thomas Yingling on theabsorbed by Austin Developments Corp., which paid
phone recently, he confirmed that both his team and100% of the costs of the drilling in return to earn a
his land positions are growing. Pennant is looking to50% interest in the venture. By adhering to a finely
acquire more oil production in Alberta, and is presentlybalanced risk/reward model, and refueling from their
considering which of three large-scale drilling it willManitoba wells, Pennant managed to keep its
commence in the short term. Yingling categorized alltreasury of over $1,500,000 relatively intact and still
three of these options as, "drill-ready, farm-inremains debt free.
opportunities for us to drill before year end. Each ofJust last month, together with Austin Developments
these projects is between one and half and threeCorp. (TSX: AUL), Pennant Energy expanded its
million dollars which we consider to be low risk,Bronson Property land holdings by successful bidding
high-return, drill-ready projects. So we're about toat a September 19th, 2007 Alberta Crown Land Sale.
move on one of them.'The Bronson Property is now sub-divided as Bronson
Another encouraging aspect about Pennant Energy isEast and Bronson West with the east portion being
the strong share position held by management.the newly acquired 640 acre contiguous property
Yingling, for example, personally holds 1.3 millionlocated south east of the existing Bronson West.
shares of the company and can therefore bePositive results from a Geochem survey and a 3D
expected to energetically pursue growth. Theseseismic survey have identified several potential drill
include "increasing shareholder wealth by targetingtargets on the 640 acre Bronson East site.
opportunities that offer the promise of accelerated oilYingling says the team has everything in place to
production with a fast payback," and simultaneouslypotentially drill a company-maker in Alberta this
expanding "participation in low-risk developmentalwinter. With a $0.40 share price, undiluted share
drilling projects that provide enough cash flow tostructure and record oil prices, Pennant offers a rare
mitigate the need to seriously dilute the company'sopportunity to participate in a ground-floor
much-envied share structure."opportunity of a well-managed and highly ambitious
A seasoned venture capitalist, Thomas Yingling was(producing!) oil & gas junior.
appointed President of Pennant Energy on June 25,This article is intended for information purposes only,
2003. Mr. Yingling has also served for over a decadeand is not a recommendation to buy or sell the
as the President of Brahma Communications Corp., anequities of any company mentioned herein. It is
investment-consulting firm that specializes inbased on sources believed to be reliable, but no
corporate finance, investor relations and strategicwarranty as to accuracy is expressed or implied. The
corporate planning for publicly traded companies. Inopinions expressed in the article are those of the
restructuring Pennant Energy, he brought Jamesauthor except where statements are attributed to
Britton, P. Geol. P. Eng. out of a comfortableindividuals other than the author, in which case the
retirement to serve as the firm's Senior Geologist /opinions are those of the individual to whom they are
Engineer and sit on the board as one of theattributed.
Company Directors.