Pennpetro Energy (LSE:PPP) plc has authorised the restart of production from its impaired Texas asset, the Chalk Talk A-1H well, subject to completion of necessary protective processes and the re-negotiation of a lapsed lease, and that RMD Group has confirmed it will provide funds for the workover.
The company said the move "may result in a partial or full reversal of the impairment loss for this asset as reported in prior periods, subject to an assessment to be made at the balance sheet date," and that production is expected to generate near-term revenue once the workover and improved technical approaches are applied.
In Ukraine, meanwhile, Pennpetro is prioritising the Limnytska licence in western Ukraine as its prime large-scale acquisition target and is also evaluating other western licences to exploit proximity synergies. Fieldwork is advanced toward enabling a well re-entry of the PG-2 well, with drill pad and road access preparations, supplier quotes received and a request made for a 3D seismic cost estimate, the company said.
"We are delighted that there is the opportunity to secure near term revenue through re-starting operations in Texas which is significant. The Limnytska licence is a project shareholders are familiar with, we are now progressing through the key activities that will enable us to re-enter an historic well to further prove out this exciting opportunity. I look forward to sharing more information about the work we have been doing with shareholders," CEO Mavriky Kalugin said.
