Pennine Acquires Petroleum, Natural-Gas Rights For Three Sections Near Red Deer, Alta

Pennine Petroleum Corporation is pleased to announce that it has signed a General Conveyance Agreement, effective June 1, 2015, for the acquisition and operation of a 50-per-cent interest in three sections (1,920 acres, or 777 hectares) of petroleum and natural-gas rights (the “Transaction”), in the Red Deer area of central Alberta from a privately held company.

The property contains two producing Viking Formation natural-gas wells that are generating comfortable positive cash flow and indicate a purchase price recovery within 12 months of the effective date. The wells were last stimulated in 1985, and it’s expected that hydraulic fracturing techniques will further increase gas and condensate flows to near initial combined production rates net to the Corporation of 25 barrels of oil equivalent per day.

This acquisition is in keeping with the strategy of adding to the domestic corporate producing asset base, in selected areas with which the Corporation is familiar. The combination of Pennine Chief Executive Officer John Garden’s extensive drilling and completion experience in this and other areas of the Western Canada Sedimentary Basin, and Director N. Desmond Smith’s geological and administration skills in the new industry paradigm, will serve the Corporation well.

About Pennine Petroleum Corporation
Pennine Petroleum Corporation is an emerging oil and gas exploration and development company currently active in Alberta and Saskatchewan. For more information, visit www.penninecorp.com.