Padre Island -Rig on location

Pantheon Resources PLC
19 July 2006


Pantheon Resources Plc

Padre Island - Rig On Location Ahead of Planned Drilling Programme Commencing
End July

• Drilling rig on location at Padre Island

• First well to be drilled, Kindee  ST 212 #1 on Plum Deep structure,
  projected to commence on or about 25 July

• Start of active drilling programme on Padre Island for Pantheon with four
  wells scheduled to be drilled over 18 month period

• Three have potential for major reserve additions and early cash flow to
  Pantheon

• Will co-incide with low risk exploration programme in south Texas which
  complements the moderate risk Padre Island drilling programme

Pantheon Resources Plc ('Pantheon') announces that it has been informed by the
Operator of the Padre Island Project Area, ('PI Project Area'), Golden Gate
Petroleum Ltd ('Golden Gate') that Parker Drilling's rig number 122 is now on
location on Padre Island. Spudding of the Kindee  ST 212 #1 well on the Plum
Deep structure is scheduled on or around 25 July. The rig will be on contract to
Golden Gate for twelve months with options to extend for up to a further two
years by six month intervals.

This well will initiate an active drilling programme on the Padre Island Joint
Venture ('PIJV'). Pantheon expects to be involved in the drilling of four
exploration wells over an 18 month period (see table 1). The exact timing and
order of the drilling programme remain dependent on the receipt of final
location approvals from the relevant authorities.

Table 1: Pantheon - Projected Drilling Programme

Prospect/  Target/Type    Estimated Start       Pantheon       Golden    IB
Well                      Date                  Resources      Gate      Daiwa

Plum Deep* Deep/               July 2006            25%         37.5%    37.5%
           exploration
Wilson*    Shallow/         September 2006          25%         37.5%    37.5%
           exploration
Manzano*   Deep/             October 2006           25%         37.5%    37.5%
           exploration
Murdok     Deep/          First quarter 2007        25%         37.5%    37.5%
South*     exploration

*Operated by Golden Gate

The Plum Deep well is considered a key exploration well with gross best estimate
potential resources (previously described as 'P50 potential reserves') estimated
to be in a 161-293 bcf range. This represents potential material upside for
Pantheon's shareholders in the event of success. Drilling costs are estimated to
be around US$10.3 million.

Plum Deep lies within the same fault trap as Plum Shallow but is targeting
deeper reservoirs at 9,500 to 15,000 feet. Plum Shallow was confirmed as a
discovery in early 2006 and is currently flowing natural gas at a rate of 1.9
mmcfd. The discovery of hydrocarbons in the shallow section provides
encouragement for Plum Deep as it confirms that it underlies a natural gas
accumulation.

Plum Deep is expected to be the first of three exploration wells targeted at the
deep section over the next 18 months. Extensive evaluation has confirmed six
mature high quality exploration targets of which Plum Deep, Manzano and Murdock
have been identified as the three largest prospects. Each of the latter offers
the potential for significant additional reserves and early cash flow to
Pantheon. The fourth prospect to be drilled in which Pantheon has an interest is
Wilson, which is small, see table 2.

Table 2 - Drilling Programme
Prospect     P50 Potential BCF      Current Planned Start  Budgeted Drilling
Name         (gross)*               Date                   Costs

Plum Deep          161-293               July 2006          US$ 10.3 million
Wilson               5-10             Second half 2006       US$5.4 million
Manzano            178-337            Second half 2006       US$9.1 million
Murdock             94-232            First half 2007        US$9.7 million
South
Lemonseed           87-123                  tba                   n.a.
Kingsway            16-20                   tba                   n.a.

*This range is based on various studies conducted on the acreage including
Golden Gate and Pantheon's Independent Technical Adviser

All the currently defined prospects are planned to be drilled from onshore
locations, with the probable exception of Kingsway. This offers the advantage of
substantially reduced costs (both for exploration and development) compared with
the offshore. It also reduces substantially the lead times to production in the
event of successful exploration.

Pantheon is participating initially in six prospects as a result of a farm-out
agreement with Golden Gate concluded in April 2006. The prospect inventory
comprises primarily large, high-quality natural gas plays in an under-explored
deep section of the Gulf of Mexico. As a result of this agreement Pantheon will
earn a 25% working interest in each prospect by paying 33.333% of the costs
associated with drilling each prospect up until the point of casing. The
prospects covered by this farm-in are:

       Plum Deep, from 9,500 to 15,000 feet;

       Manzano Deep, from 10,500 to 16,500 feet;

       Murdock, all depths from surface;

       Lemonseed, all depths below 9,100 feet;

       Wilson, all depths from surface; and

       Kingsway, all depths from surface.

These prospects are all covered by 3D seismic. In the view of the Board of
Pantheon, the deep JV of the PI Project Area is a moderate risk (POS 15% to
36%), high reward exploration venture. It offers the potential, if successful,
of major value accretion to the Company and its shareholders.


In accordance with the AIM Rules, the information in this report has been
reviewed and signed off by Mr Robert Rosenthal, (BSc Geology, MSc
Geology), Technical Director at Pantheon Resources Plc, who has over 30 years
relevant experience within the sector.


19 July 2006


Contacts:

Pantheon Resources Plc
Sue Graham, Chairman                            [phone]

Oriel Securities Limited
Scott Richardson Brown                          [phone]



                      This information is provided by RNS
            The company news service from the London Stock Exchange