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. Production tubing has been installed in the Donnybrook Energy
Bigstone Hz 15-32-60-22 W5M well (25% working interest to Pennant) and a 7 day
production test has been completed. The well flowed at an average rate of 1.1
mmcf of gas per day and 153bbls of fluid per day. The fluid was a combination of
condensate and load oil from the hydraulic fracture treatment. To date the well
has recovered 992 m3 of frac oil from the 1,810 m3 of load oil that was injected
during the fracture operation. A review of the 24 stage hydraulic fracture that
was performed on the well indicates that only 5 of the 24 stages of the planned
fracture programed were successfully stimulated. During the hydraulic fracture
operation 460 tons of fracture propant and fluids were placed. A mechanical
failure during the first stage of the hydraulic fracture program appears to have
prevented up to 16 stages of the Montney formation from being fracture
stimulated and 3 stages may have received all of the 360 tonnes of hydraulic
fracture stimulation that was to planned for the first 18 stages. During the
production testing the well continued to flow back high concentrations of load
oil from the fracture stimulation and it is believed that as the well continues
to unload frac oil the production rates of natural gas, condensate and NGLs will
improve. As a result the well completion rates do not reflect the quality of
reservoir the well encountered while drilling. The 15-32 well 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 14-29 Bigstone discovery well. The
15-32 well is currently shut in for pressure build up and analysis and will be
placed on production with 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 NGLs (1,011 barrels of oil equivalent per
day as soon as the pipeline and production facilities are completed.
Construction operations for the pipeline surface facilities are expected to
commence in mid-February with all facilities ready for production to start by
April 1st.


Donnybrook has informed Pennant the next well to drilled at Bigstone is
scheduled to spud within 2 weeks from a surface location at 4-28-60-22w5 and
will be an extended reach 2,700m Hz well with a bottom hole location in
13-33-60-22w5. 


Pennant's Bigstone Project is comprised licences covering a total of 7 sections
or 4,480 acres (1.75 net sections, 1,120 nets acres), in Township 60, ranges 22
and 23W5 at Bigstone, Alberta. Pennant has earned 25 per cent of Donnybrook
Energy Inc.'s interest in the Bigstone lands and in any future operations within
an area of mutual interest.


Thomas Yingling, President of Pennant Energy Inc., stated, "The mechanical
issues we encountered with the 15-32 well are disappointing and have clearly
restricted the flow rates from our well. However, we are encouraged by the
results of a similar extended reach Hz well directly offsetting and projecting
into the center of our land block that reported a final 24 hour test rate after
a 4 day flow period of over 2,850 boe/d. We are confident that that well is a
more accurate measure of the potential of the Montney on our lands and look
forward to drilling and completing our next well which will commence within 2
weeks 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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