Pennpetro Energy PLC closed a deal to gain operatorship in a Whistling Straights well and acquire 100% interest in two other wells in Gonzales County, Tex.
The company completed the deal with Millennium PetroCapital Corp. to increase its stake to 100% working interest from 25% in Whistling Straits 5H with 75% net revenue interest and to assume operatorship of the well with immediate effect.
Millennium unsuccessfully installed a jet pump to clean up Whistling Straits 5H and until now has yet to recover all the load water used during drilling and completion from the well. Pennpetro plans to change to an electrical submersible pump, which has the benefits of having a positive displacement pump, to recover the remaining drill fluids to surface and produce the oil.
The deal also gives 100% acquisition of 10 tracts covering 2,036.38 acres and exclusive rights to 100% working interest in two other adjacent developed wellbores (Chalk Talk #1H & #4H).
Pennpetro will bring the Chalk Talk #1H and #4H wells back online, flow test the Whistling straits 5H well, and potentially bring back online the 100% owned City of Gonzales #1 (COG #1) well that Pennpetro was forced to shut in during the pandemic.