Pinnacle Energy Corp. (OTCBB: PENC), an independent oil and gas producer, today announced that the company has secured rights to additional acreage adjacent to the company’s Glencoe Prospect in Pawnee County, Oklahoma, USA. Pinnacle has the option to participate in up to a 25% working interest in the new 2,000 acre field, named Peppercreek 1.
The property lies adjacent to the productive Glencoe field, and the company believes that Peppercreek 1 extends the structural formation identified in the Glencoe property. Concurrent with operations on the existing Glencoe field, Pinnacle Energy plans to expand the current reserve report to include the newly acquired Peppercreek 1 acreage. This revised study should prove to increase the Company’s probable and possible reserves while targeting additional drill sites. Drilling operations are expected to commence in 2009. With this acquisition, Pinnacle Energy has more than doubled its acreage position in the area, which has been consistently producing oil and gas for some time.
“Securing additional leases in the same area as our existing Glencoe prospect is a major strategic win,” said Pinnacle Energy CEO Nolan Weir. “Our Glencoe field has been very productive, and has great future potential. We anticipate that this newly acquired acreage is an extension of the structural trend identified in the Glencoe field – and because Peppercreek 1 is located immediately next to Glencoe, we are eager to move forward with our plans for exploration and extraction.”
About the Glencoe Prospect:
The Glencoe Prospect covers approximately 875 productive acres in the Upper Cleveland sand and 1,720 acres in the Lower Cleveland sand of Pawnee County, Oklahoma, USA. A recent reserve report for this field suggests that proven, probable and possible reserves of up to 214,000 barrels of oil and 839,000 Mcf of natural gas may be available for extraction by Pinnacle Energy. Potential drilling plans through 2011 include as many as 43 wells within the Upper and Lower Cleveland sands.
About Pinnacle Energy Corporation:
Formerly named Gas Salvage Corp., Pinnacle Energy trades under the OTC symbol PENC. Pinnacle Energy’s key assets include six wells located in Pawnee County, Oklahoma, USA, producing sweet crude oil and natural gas. More information about the company may be found within filings made with the Securities and Exchange Commission.
Pinnacle Energy Corp. is an independent oil and gas producer focused on acquiring and developing mature oil & gas producing assets. Pinnacle Energy Corp. is headquartered at 333 River Front Ave., Suite 153, Calgary, Alberta, T2G 5R1, Canada and can be contacted at 866-822-0325.
Certain statements included in this release constitute forward-looking statements. These forward-looking statements are based on management’s belief and assumptions derived from currently available information. Although Pinnacle Energy Corp. believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Actual results could differ materially from forward-looking statements expressed or implied herein as a result of a variety of factors including, but not limited to: a decline in the price of, or demand for, oil and gas; general economic conditions; other financial, operational, and legal risks, and uncertainties detailed from time to time in Pinnacle Energy Corp.’s SEC filings. Pinnacle Energy Corp. does not undertake any obligation to publicly update forward-looking statements contained herein to reflect subsequent events or circumstances.
Contacts:
Soames Haworth, 858-764-4346
shaworth@pinnacleenergycorp.com
