Pantheon Resources PLC
02 January 2007
January 2, 2007
PANTHEON RESOURCES PLC
Aggressive Exploration Campaign Continues on Project Wharton
• Pantheon boosting its aggressive exploration campaign on Project
Wharton.
• Two new exploration prospects targeted; Baptist and Kant.
• Kant #1 well spudded on December 29, 2006 with potential reserves
estimated in a 0.25 to 2.0 billion cubic feet range.
• Initial success rate on Project Wharton at 75%
• Further three wells in and around recent discoveries are currently
scheduled for 2007.
• Project Wharton now producing natural gas from two wells with third
due on-stream shortly
• This represents an important income stream for Pantheon with
attractive near term financial returns.
The Board of Pantheon Resources plc ('Pantheon') announces that it has been
informed by the operator, Everest Resource Company ('Everest'), that the Kant #1
well spudded on December 29, 2006. This well is located in Colorado County,
south Texas.
The Kant #1 well is testing is testing a large Frio seismic amplitude anomaly at
3,240 feet ('ft'). This anomaly covers 100 acres and was located using
3D-seismic. The primary objective being targeted by the Kant #1 well has a
conservative reserve potential of 0.25 billion cubic feet ('bcf') and a high
side reserve potential of 2.0 bcf. The Kant anomaly is comparable to anomalies
associated with productive reservoirs nearby. Kant #1 also has additional
potential to find thinner Frio/Miocene reservoirs that do not produce seismic
anomalies. These would boost high side reserve potential in the event of
success.
The Kant objective sits in a favourable structural position. It appears to be on
a regional high in the middle of a trend of prolific shallow Frio/Miocene
production. This combination of structural high and high quality amplitude
anomaly makes a very attractive drilling target.
Kant #1 is the fifth well to be drilled on Project Wharton, a farm-in concluded
with Everest in June 2006. Pantheon is paying 25% of the drilling costs to earn
an 18.75% working interest in Kant. In the event of success, there is easy
access to infrastructure.
Since its initial farm-into three projects in June 2006, Pantheon has farmed
into three more prospects and drilled four wells on Project Wharton. Pantheon is
now producing from two natural gas fields, Zebu and Mohawk. A third, Caddo, is
scheduled to be commissioned shortly. When combined together, these fields will
make up an attractive and growing income stream for the company. This increasing
natural gas production occurs at a time of improved US natural gas prices. It
represents an important income stream for a small company such as Pantheon with
attractive near term financial returns.
This initial drilling campaign has delivered effectively a 75% success rate.
This has provided sufficient confidence to boost exploration in the Project
Wharton area. Apart from Kant #1, Pantheon has also agreed to drill another
exploration well, Baptist, over the coming months. A further three wells in and
around the recent discoveries are currently scheduled for 2007. As these are not
subject to the farm-in terms, they would have a higher value to Pantheon, if
successful. The current three discoveries, combined with the increased
exploration efforts, hopefully will yield higher natural gas production in 2007.
The current interests and status of all prospects in which Pantheon has an
interest are shown in table 1
Table 1: Project Wharton and Pantheon's Interests
Prospect Pantheon Working Interest Status
Zebu #1 9.375% Producing
Caddo #1 18.75% Due on-stream early 2007
Dakota #1 18.75% P&A non-commercial shows
Mohawk #1 18.75% Producing
Baptist #1 11.50% Drilling scheduled for 1Q 2007
Kant #1 18.75% Drilling underway
Source: Everest Resource Company
Project Wharton provides Pantheon with low risk plays to balance the higher
risk/reward plays at the PI Project Area. Overall exploration risk for the
Project Wharton prospects is regarded as low, ranging from 50% to 80%. This
compares with 15% to 36% for the deep JV of the PI Project Area.
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.
Contacts:
Pantheon Resources Plc
Sue Graham, Chairman +44 20 7379 0118
Oriel Securities Limited
Scott Richardson Brown +44 20 7710 7600
This information is provided by RNS
The company news service from the London Stock Exchange ID
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