Texas Oil Well – Drilling Operations Commence

Pennpetro Energy PLC

("PPP" or "Pennpetro")

Texas Oil Well - Drilling Operations Commence

Highlights:

·     Drill rig on site and has commenced drilling operations on the Whistling Straits #1H well, under its recently signed Joint Operating Agreement with Millennium PetroCapital Corporation.

·     Drill targeting Austin Chalk.

·     The well is expected to take around 2 weeks to drill and complete.

·    The well is being planned as a 12,760 feet measured depth ("MD") with a 7,545 feet true vertical depth ("TVD") horizontal well with a 4,800 feet lateral within the Austin Chalk target interval.

London, 28 March 2023 - Pennpetro Energy PLC (LSE:PPP), an independent oil and gas company focusing on production and development in Gonzales County, Texas, USA, today announces that its wholly owned subsidiary, Nobel Petroleum USA Inc. ("Nobel"), has spudded its first well under its recently signed Joint Operating Agreement with Millennium PetroCapital Corporation ("Millennium") within the 250,000 acre (1,011 square kilometres) Area of Mutual Interest ("AMI") petroleum joint venture in Gonzales County, Texas.

Tom Evans, Pennpetro's CEO, commented: "The Whistling Straits #1H well, to be drilled within the Gonzales County AMI with Millennium, is the first of hopefully many wells to be drilled in Texas under our new Joint Venture that we announced two weeks ago. We look forward to updating shareholders about all developments during this exciting time for the Company."

Andy Clifford, Nobel's President, commented: "The Whistling Straits #1H well is a sidetrack from Millennium's Chalk Talk #3H well which had targeted a deeper section of the Austin Chalk - the Austin Chalk "B" interval. The well will be completed as an open-hole completion connecting naturally occurring fractures with supplemental contribution from matrix porosity without the requirement of fracking." 

The Gonzales County 250,000 acre (1,011 square kilometres) AMI is located about 290 miles (466 kilometres) due west of Houston and will provide PPP's Nobel with a large inventory of low risk development options in a world class oilfield.

Nobel is paying 33.33% of the cost to drill and complete this joint development well connected to the storage tanks for a net 25% working interest (18.75% net revenue interest) as well as a prospect fee which covers sunk costs relating to leasing, land, legal, 3D seismic licensing, geological and geophysical analysis.

Qualified Person's Statement:

Deane Pierce, Nobel's Executive Vice President Engineering, who has 45 years of relevant experience in the global oil industry, has approved the information contained in this announcement. Mr. Pierce graduated with a BS Mechanical Engineering from Texas Tech University, has an MBA Finance from Dallas Baptist University and is a Registered Petroleum Engineer #56733. Mr. Pierce also has numerous industry publications dealing with drilling and production optimization with an emphasis on horizontal completion and inflow control.

-ENDS-

This announcement contains inside information within the meaning of Article 7(1) of (i) Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014, as amended (the "EU Market Abuse Regulation") and (ii) the EU Market Abuse Regulation as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.

ENQUIRIES:

NOTES TO EDITORS:

Pennpetro Energy is an independent oil and gas company focusing on production in the Gonzales Oil Field in Texas, USA. Shares in the company were admitted to the Official List of the London Stock Exchange by way of a Standard Listing on 21 December 2017 with the ticker symbol "PPP". Its wholly owned subsidiary, Nobel Petroleum USA Inc. has a Participation, Development and Option Agreement and Joint Operating Agreement with Texas based Millennium PetroCapital Corporation over a 250,000 acre Area of Mutual Interest in Gonzales County, Texas, aimed at exploiting the prolific proven Austin Chalk oil and gas play.

Further information on the Company can be found at www.pennpetroenergy.co.uk