Pennant's First "Extended Reach" Montney Horizontal Well TD'd

Thomas Yingling, President of Pennant Energy Inc. (TSX VENTURE:PEN) announces
that Pennant has been advised by the operator, Donnybrook Energy Inc., that the
DEI Bigstone Hz 15-32-60-22 W5M "extended reach" horizontal well (25% working
interest to Pennant) has been drilled to total depth ("TD") and the completion
string has been installed in preparation for fracing operations, scheduled for
January 15, 2012. The well was drilled directionally to a total measured depth
of 5,512 meters from the 3-29-60-2W5 surface location and included an extended
reach lateral through the Montney Formation measuring 2,744 meters at the
15-32-60-22W5 bottom-hole terminus. The completion string is configured to
conduct a continuous, multi stage fracture stimulation consisting of up to 24
stages over the length of the horizontal lateral. The completion operations
including the frac procedure, production test and preparing the well in
readiness for tie-in to sales are estimated to be accomplished by early to mid
February, 2012.


The 15-32 well horizontal section is over twice as long (close to 1,500 meters
longer) than Pennant's first successfully tested Montney horizontal well, DEI
Bigstone Hz 14-29-60-22W5. The 14-29, (37.5% BPO/25% APO working interest) which
parallels part of and directly offsets the 15-32 well, flowed at a rate of
approximately 4.3 million cubic feet per day of natural gas (mmcf/d) and 295
barrels per day (bbl/d) of condensate from a 1,254 meter lateral (1,011 barrels
of oil equivalent per day (boe/d)) during the last 24 hours of a 4 day
production test. The 15-32 well will be frac'd with the same, synthetic
oil-based multi-stage system utilized in the completion of the 14-29 well.


The long lateral or "extended reach" horizontal wells, in suitable areas, have
the potential of reducing well density by up to 50% over the shorter 1200 meter
laterals, improving project economics and substantially reducing the surface
environmental footprint. To date, 11 of the 15 Montney horizontal wells
currently drilled in the Bigstone/Fir area are "extended reach" with laterals
ranging in length from 2,200 to 2,800 meters, while the remaining four wells
have laterals of 1,200 to 1,300 meters. Each of these shorter laterals were
drilled by local operators, to assess the development potential of the Montney
formation, liquids rich natural gas resource in this area by employing current,
state of the art horizontal drilling and fracture stimulation techniques prior
to moving to the extended reach longer laterals for development purposes.


Planning for drilling a third well and construction of gas gathering and
production facilities are currently underway with a targeted start-up and on
stream to sales commencing in Q2 2012. Pennant holds a 25% working interest in 7
gross sections (1.75 net) sections at Bigstone, which could potentially support
an equivalent of 4 (1.0 net) horizontal wells per section, depending on lateral
length. 


Pennant and its partners continue to work toward having 3 wells drilled
completed and tied in by the end of the winter drilling season. Thomas Yingling,
President of Pennant Energy Inc. stated, "Once these first Bigstone wells are on
stream it will add significantly to our current production and reserve base as
well as our overall understanding of the Bigstone prospect's potential." 


To view a brief video detailing the horizontal frac process please visit our web
site at www.pennantenergy.com and for further information on any of our projects
please feel free to contact the company at 604-689-1799. 


ON BEHALF OF THE BOARD OF DIRECTORS OF PENNANT ENERGY INC.

Mr. Thomas Yingling, President

Oil Equivalency Conversion (BOE)

Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural
gas volumes have been converted to BOE at a ratio of 6,000 cubic feet of natural
gas to one barrel of oil equivalent (6 Mcf = 1 BOE). The conversion ratio is
based upon an energy equivalent conversion method, primarily applicable at the
burner tip and does not represent value equivalence at the wellhead. BOE values
may be misleading, particularly if used in isolation. Furthermore, this News
Release may contain forward-looking statements based on assumptions and
judgments of management regarding future events or results that may prove to be
inaccurate as a result of exploration and other risk factors beyond its control,
and actual results may differ materially from the expected results. 


FORWARD-LOOKING STATEMENTS Certain information set forth in this news release
contains forward-looking statements or information ("forward-looking
statements"), including statements regarding the completion of the Bigstone
15-32 well, the timing of tie-in, anticipated initial production, drilling plans
for the Company's Bigstone acreage, potential drilling locations, the drilling
of additional wells and the construction of a gathering system at Bigstone and
projected corporate Q2 2012 production date. By their nature, forward-looking
statements are subject to numerous risks and uncertainties, some of which are
beyond Pennant's control, including the impact of general economic conditions,
industry conditions, volatility of commodity prices, currency fluctuations,
imprecision of reserve estimates, environmental risks, operational risks in
exploration and development, competition from other industry participants, the
lack of availability of qualified personnel or management, stock market
volatility and the ability to access sufficient capital from internal and
external sources. Although Pennant believes that the expectations in our
forward-looking statements are reasonable, our forward-looking statements have
been based on factors and assumptions concerning future events which may prove
to be inaccurate. Those factors and assumptions are based upon currently
available information. Such statements are subject to known and unknown risks,
uncertainties and other factors that could influence actual results or events
and cause actual results or events to differ materially from those stated,
anticipated or implied in the forward looking information. As such, readers are
cautioned not to place undue reliance on the forward looking information, as no
assurance can be provided as to future results, levels of activity or
achievements.

The risks, uncertainties, material assumptions and other factors that could
affect actual results are discussed in our management's discussion and analysis,
Annual Information Form and other documents available at www.sedar.com.
Furthermore, the forward-looking statements contained in this document are made
as of the date of this document and, except as required by applicable law,
Pennant does not undertake any obligation to publicly update or to revise any of
the included forward-looking statements, whether as a result of new information,
future events or otherwise. The forward-looking statements contained in this
document are expressly qualified by this cautionary statement. Where amounts are
expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have
been converted to oil equivalence at six thousand cubic feet per barrel. The
term BOE may be misleading, particularly if used in isolation. A BOE conversion
ratio of six thousand cubic feet per barrel is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not represent
a value equivalency at the wellhead. References to oil in this discussion
include crude oil and natural gas liquids ("NGLs"). NGLs include condensate,
propane, butane and ethane. References to gas in this discussion include natural
gas. Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this news release.
Pennant Energy (TSXV:PEN)
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