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. The Donnybrook Energy Bigstone Hz 15-32-60-22 W5M well (25%
working interest to Pennant) encountered 2,744 m of high quality Montney
reservoir with strong gas shows and excellent penetration rates. The reservoir
encountered is comparable to the Montney interval that was successfully
completed in Pennant's first Bigstone Montney well, Donnybrook et al
14-29-60-22w5, which was the 1,200m Hz Bigstone Montney discovery well that
tested 4.3mmcf/d and 295 barrels of NGL's (1,011 barrels of oil equivalent per
day). The reservoir quality encountered while drilling the 15-32 well proves the
play and reservoir quality of the Montney at Bigstone extends at least as far
north as the northern boundary of Pennant's 1,792 ha 7 section (448 ha 1.75
section net) contiguous land interests. 


The 15-32 well is currently flowing natural gas, natural gas liquids and
hydraulic fracture fluids undergoing clean up operations after completion of the
23 stage hydraulic fracture operation. During the hydraulic fracture operation
460 tons of fracture propant and fluids were placed. However, mechanical
complications were encountered that have limited the number of stages that the
operator can definitively say was successful. The final 5 stages were clearly
successfully completed with 120 tons of propant and fracture fluids placed. At
this time the operator is preparing to put production tubing in place and
continue to flow the well. The flow rates for the 15-32 well will be released
once the well has had further time to clean up and the rates are stabilized.


An industry competitor has drilled a 2,760m extended reach Hz well offsetting
Pennant's lands 800m to the west and parallel to Pennant's 14-29 well. This well
terminated 200m south of Pennant's Section 31 and 200m west of the NW corner of
section 29. The operator of the well reported a final 24 hour test rate after a
4 day flow period of 12.5mmcf/d with 770 barrels of condensate per day and
expects to yield a further 30-35 bbls per mmcf of natural gas liquids that will
be recovered from a shallow cut processing facility. This well is a strong
indication of the productivity of the Montney reservoir at Bigstone and
indicates the reservoir continues to the west and northwest onto Pennant
interest lands.


Donnybrook has informed Pennant that surveys have been completed and contracts
are in place to construct a 1.5 mile pipeline to tie in the 14-29 and 15-32
wells. Both wells were drilled from the same surface location and will be tied
into the pipeline and shared surface facilities. Field construction operations
for the pipeline are expected to commence in mid-February with all facilities
ready for production to start by April 1st. 


Donnybrook is currently waiting on surface approval to commence construction of
2 drilling pads that will facilitate the drilling of up to 6 more wells. Surveys
have been completed for 5 of these development locations. Construction of the
first surface lease is expected to be complete by mid-February and Donnybrook
has informed Pennant they have located a rig suitable to commence drilling the
next well as soon as the third week in February. Donnybrook anticipates this
well will be drilled from a surface location at 4-28-60-22w5.


Thomas Yingling, President of Pennant Energy Inc. stated, "Although the
mechanical issues we have encountered with the 15-32 well have raised some
technical issues, Pennant is excited about the quality of reservoir the 15-32
well has encountered and looks forward to receiving results from the production
test and placing the well on production. We are continuing to move ahead in the
field with operations to tie in both the 15-32 and 14-29 wells, and are
preparing to drill a third well on this exciting prospect." 


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 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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