The operations took longer than the initially scheduled time due to the wet weather and poor surface lease conditions; however, we are very pleased to announce that the well was successfully flow tested at the maximum allowable rate during the 4 hour test period regulated by the EUB for sour gas wells in this area and the well has been shut in to monitor pressure build-up.

The pressure build up monitoring period is scheduled to take several days, contingent upon weather related lease accessibility. Analysis of the production and pressure build up data will be carried out subsequent to gathering final pressure build-up data.

The results of the interpretation and future operation plans will be announced as the information is made available by Highpine. The company is participating as to a 24% interest in the well. The cost of the completion and testing operations is estimated to be $153,000 net to the company. The Pembina Field is a large, mature oil and gas field centered approximately 65 miles southwest of the City of Edmonton, Alberta.

Individual wells in each of the neighboring pools have produced at rates of in excess of 1000 barrels of oil per day (bopd) and 3 million cubic feet per day (Mmcfd). Based on 3D seismic data, the reservoir, encountered in drilling this well is approximately 140 acres in area with an average potential pay interval of 25 feet.

Thomas Yingling, president of PEN stated, "We are very encouraged by the fact that the well flow tested at the maximum allowable rate. With oil and gas prices near all time record highs and the fact that Pennant still only has 16.5 million shares out and no debt, success in this Pembina well could significantly impact our balance sheet. Pennant is also currently conducting due diligence on several other oil and gas projects, all located within Western Canada."

Visit the company's web site web site at www.PennantEnergy.com.