PEN Pennant Energy

Thomas Yingling, President of Pennant Energy Inc. (TSX VENTURE:PEN) is pleased
to provide an operations update on its Bigstone Montney high natural gas liquids
resource play. As of July 29, 2012 the following production rates have been
recorded from Pennant's Bigstone prospect. 


The Donnybrook et al 14-29-60-22w5 1,200m Hz Bigstone Montney discovery well
which tested 4.3mmcf/d and 295 barrels of NGLs (1,011 barrels of oil equivalent
per day) from a 1,254m lateral, commenced production on June 18. Over the first
42 days, the 14-29 well averaged 1.61mmcf/d (605 mcf/d PEN W.I.) and 72.8 bbls/d
(27.3 bbls/d PEN W.I.) of condensate for a total of 341 BOE/D (128 BOE/D PEN
W.I.). Further NGL will be extracted during processing at the shallow cut plant
and are estimated to be 30-35 bbls/mmcf of raw gas. Pennant has a 37.5% W.I. in
the 14-29 well subject to a 2% GORR, plus a 10% ORR on its W.I. until payout at
which time Pennant reverts to a 25% W.I. and 2% GORR.


The second Bigstone well drilled, Donnybrook et al Bigstone Hz 15-32-60-22 W5M
(25% working interest to Pennant subject to a 2% GORR), commenced production on
July 16 and has been producing natural gas condensate and NGLs that will be
extracted during processing, for the past 7 days. The 15-32 well had technical
problems during the completion and only 6 stages of the planned 23 stage frac
were completed successfully. Despite this setback, the well is currently
producing and the initial production rates are encouraging. The well has
averaged 1.75 mmcf/d (438 mcf/d PEN W.I.) with 153 bbls/d (38 bbls/d PEN net
W.I.) of condensate for a total of 445 BOE ( 111.5 BOE/D PEN net W.I.). The
current fluid production includes both load fluids and free condensate, as 100%
of the load fluids have not been fully recovered to date. 


The third Bigstone well, Donnybrook et al Bigstone Hz 13-33-60-22w5, was drilled
to a total measured depth of 5,336m and completed with a 23 stage frac. After
initial flow back and clean up, the well is currently waiting on dry weather to
install production tubing and final flow testing as well as commence
construction and installation of surface facilities. The well will be tied into
the Donnybrook et al Bigstone pipeline system as soon as access conditions
permit. All operations at 13-33 have encountered delays due to heavy rain which
has made access to the lease site difficult. As soon as surface conditions dry
out operations at 13-33 will commence. Flow rates on the well are currently not
being released by partners until final testing has been completed.


Industry activity in the Bigstone area continues to prove up the potential of
Pennant's land holdings to the west. The most recent well to be announced was an
extended reach HZ that terminated 195m south of Pennant's 25% W.I. lands in Twp
60-23w5. The operator has reported the well tested an average 16 mmcf/d and
approximately 800 bbls of condensate per day at the end of the test. This
compares very well to an initial extended reach HZ well by the same operator
that offsets Pennant 25% W.I. lands in 60-22w5 for a mile of HZ length and is
only 200m west of Pennants lands. The initial well tested 12.5mmcf/d and 770
bbls per day of condensate. These wells continue to demonstrate the excellent
reservoir potential of the Montney Formation underlying the western side of
Pennants 25% W.I. lands in the Bigstone area. Pennant has a 25% interest in 4
sections 1,024 Ha (256 ha net) in the western portion of its Bigstone prospect
that have not been drilled to date. Pennant has an interest in a total of 8
sections (1.875 sections PEN W.I.) of land in the Bigstone area for an overall
W.I. of 23.4375%. The next well pennant plans to drill will be to test the
western portion of the Bigstone lands.


Based on the results to date, four new Hz Montney drilling locations at Bigstone
have been surveyed. The timing of the drilling of these additional wells will be
finalized in Q4 2012.


Thomas Yingling, President of Pennant Energy Inc., stated, "The start of
production at Bigstone is a significant step and 239.5 BOE/D net to Pennant for
the first two wells has a big impact on our daily production. Although the
mechanical issues we have encountered with the 15-32 well were disappointing,
production from the well to date has been encouraging and we are very excited
about the continued success surrounding our lands to the south and west. We look
forward to commencing the final testing and tie in of the 13-33 well and further
growth from the Bigstone area." 


To view a brief video detailing the horizontal frac process please visit our
website 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 spud of the Bigstone 15-32 well
and horizontal length, 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 rate. 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.

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