Peninsula Energy Reports Operational Progress at Lance Project
Key points
- HH15 and HH17 achieve flow rates in line with design parameters
- Newly drilled wells show strong flow rates and high uranium concentrations
- Cost optimization initiatives implemented to focus on higher-return production areas
Full summary
Peninsula Energy Limited (ASX: PEN) has reported significant operational progress at its Lance Project in Wyoming, USA. Header Houses 15 and 17 have achieved flow rates in line with original design parameters, with HH15 operating at approximately 350 gallons per minute (GPM) and HH17 at approximately 500 GPM. Newly drilled wells across Header Houses HH14, HH16, and HH12 have demonstrated strong flow rates and high uranium concentrations, exceeding historical averages. Cost optimization initiatives have been implemented, including the temporary suspension of lower-grade wells to focus on higher-return production areas. The Company has also refined its FY2027 development plan to prioritize operational reliability, wellfield optimization, and capital efficiency.
Guidance
CY2027 uranium production expected to be within 500,000 to 600,000 pounds U3O8
Outlook
Peninsula Energy is taking a measured approach to its next phase of development, focusing on operational reliability and deferring non-essential expenditure to reduce execution risk.
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