2009-08-11-2008-04-01

To farm in.

Pennant Energy Inc., Vancouver, (Toronto Venture: PE) plans to enter a farm-out agreement with privately held Alberta company Silver Spirits Inc. in Fort Saskatchewan Field area, east of Edmonton in Township 54 Range 22W4. Pennant will pay 100% of the costs to drill and case or abandon a test well, earning a 100% before-payout working interest subject to a 7% gross overriding royalty on production and 65% working interest in the remainder of the acreage. At payout, Silver Spirits will have the option to convert to a 35% working interest.