Pennpetro Energy reports annual results with leadership changes

LONDON - Pennpetro Energy Plc (LSE:PPP) has released its annual report for the year ended March 31, 2024, revealing production of 8,913 barrels of oil worth $493,005 from its Peach Creek assets in Texas, alongside significant leadership changes and asset impairments.

The company reported that its wholly-owned subsidiary, Nobel Petroleum USA Inc., completed several transactions during the reporting period, including earning a 25% working interest in the Whistling Straits #5H well in exchange for paying 33.33% of drilling and completion costs. The well was completed as a potential oil producer on April 13, 2023.

Nobel subsequently acquired Millennium PetroCapital Corporation’s interest in the well on June 22, 2023, assuming 100% working interest in 2,036.38 acres of leaseholdings and obtaining an option to acquire additional wells. This option was exercised on August 17, 2023, with regulatory approval granted on August 25, 2023.

Production from the Peach Creek (Austin Chalk) assets came from two wells - Whistling Straits 1H well produced 7,363 barrels and well 4H delivered 1,550 barrels. No production was recorded from the City of Gonzales COG "1" well.

The board has implemented a $7.1 million impairment of company assets, which could potentially be reversed depending on the outcome of ongoing efforts to establish the status of mineral leases.

After the reporting period, Pennpetro underwent significant leadership changes with Stephen Lunn appointed as Chairman in September 2024 and Robert Menzel joining as CEO in January 2025. The company was suspended from trading on August 1, 2024.

The annual report notes that delays in financial reporting occurred following the sudden passing of the Company Secretary in April 2024, who was the sole signatory on the company’s bank account.

Based on a press release statement, the new leadership team is working to improve corporate governance and financial reporting processes.

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