Pegasi Successfully Drills Its First Horizontal Well; Stock Sees Move Up; $PGSI

Pegasi Successfully Drills Its First Horizontal Well; Stock Sees Move Up; $PGSI

Pegasi Energy Resources Corp. (OTCBB:PGSI), a Nevada corporation (“PERC” or “Pegasi”), is an independent organic growth-oriented energy company engaged in the exploration and production of natural gas and oil through the development of a repeatable, low geological risk, high potential project in the active East Texas oil and gas region. Pegasi currently holds interests in properties located in Marion and Cass County, Texas, home to the giant Rodessa oil field, which has produced approximately 2.3 trillion cubic feet of gas and 400 million barrels of oil. The field has historically been the domain of small independent operators and is not a legacy field for any major oil company.

The Company is pleased to announce "the successful drilling of its first horizontal well in Cass County, Texas. The Morse Unit # 1-H is the first horizontal well in Pegasi's planned development of its extensive Cornerstone Project in East Texas."

The well "has been drilled and suspended with production liner set within the 2,000 foot horizontal section of the well. The Company is planning a multi-stage frack in the completion of the well, which will be performed within 60 to 90 days. This multi-stage frack will involve a sequence of dynamic fracturing conducted in pre-determined sections of the horizontal well bore." Pegasi is in the process of evaluating the data "acquired on the vertical pilot that penetrated all of the formation's potential target reservoirs to a vertical depth of 10,843 feet as well as the data acquired from the target zone of the horizontal lateral, which was drilled to a MD of 12,576 feet. This petrophysical and petrochemical information will be used to design a multi-stage frack that is specific to the target reservoir of the well."

Pegasi CEO Michael Neufeld commented,

"This is the first horizontal well targeting the oil bearing Bossier formations that has been drilled in Cass County, Texas. We are pleased with the results and will continue our drilling program for these reservoirs during 2012."  Read more at Yahoo Finance.

Since May 1, Pegasi has shown a 31% increase in stock price. Last week especially saw the stock make a significant move up on increased volume. View the PGSI stock chart at Yahoo Finance.