Independent oil and gas producer Pinnacle Energy Corp. (OTCBB: PENC), formerly Gas Salvage Corp., announced the acquisition of working interests in six wells in Pawnee County, Okla., for $1 million. The news sent shares of Pinnacle Energy soaring nearly 33 percent, to 98 cents.
The company’s interest in the wells lies in reports that, as of August 27, 2008, the five oil wells are producing 20 barrels of oil per day and 30 MCF of gas per day. Pinnacle Energy will retain a 25.5-percent net revenue interest in two wells, a 20-percent working interest in three wells, and a 17-percent interest in the remaining well.
According to Pinnacle Energy CEO Nolan Weir, the company is looking forward to long- and short-term benefits from the acquired wells. “Current production and reserve reports suggest that the Glencoe field in Pawnee County, Oklahoma, has excellent long-term development potential,” Weir stated. “We look forward to developing the field to its fullest potential in the very near future.”
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