Pinnacle Energy Corp. (PEMC.OB) is a junior oil and gas exploration company focused on acquiring and developing mature oil and gas producing assets. Formerly named Gas Salvage, the company has recently completed a name change and a three-for-one forward stock split.
Recently, Pinnacle Energy announced that they had acquired working interests in six wells located in Pawnee County, Oklahoma, for $1 million. Pinnacle Energy has a working interest of 25.5% in two wells, 20% in three wells, and a 17% working interest in the remaining well.
Five of the six wells produce high-gravity light sweet crude oil, and the sixth is a saltwater disposal well. As of August 27, 2008, the five oil wells are producing 20 barrels of oil per day and 30,000 cubic feet of gas per day net for Pinnacle Energy. Pinnacle Energy also has a nearly 45% working interest in a 40-acre oil and gas lease located in Lincoln County, Oklahoma, that is producing roughly 30,000 cubic feet of gas per day for the company.
Pinnacle Energy is currently pursuing financing that will facilitate its acquisition of additional energy-related properties. The company’s current assets are capable of generating in excess of $839,000 in revenues after one full year of operations at current levels.
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