Business
Addition to Portfolio
Addition to Portfolio.
About this update from Pantheon Resources Plc
[{"type":"text","content":"\n Pantheon Resources PLC\n07 August 2007\n\n\n\n\nAugust 7, 2007\n\nPANTHEON RESOURCES PLC\n\nFarm-in to Development Well at Padre Island\n\n • Pantheon expands involvement in proven shallow Padre Island\n\n • Farming-into development well on La Playa Deep\n\n • Well scheduled to spud by end August and take 30 days to drill\n\n • Existing La Playa Deep well consistently produced at over five mmcfd\n\n • Target similar to that tested successfully at Wilson\n\n • Terms very favourable by industry standards\n\n • This represents a significant and very low risk opportunity for Pantheon,\n particularly given the favourable terms\n\n • Pantheon now has two development projects in its portfolio to balance its\n high impact ventures\n\n\nDetails of Farm-in\n\nThe Board of Pantheon Resources plc ('Pantheon') announces that it has\nfarmed-into an appraisal/development well on the Mid-Frio La Playa #1 natural\ngas find ('La Playa Deep'). Although located on Padre Island, La Playa Deep is\nseparate from the Padre Island Joint Venture. La Playa Deep is a shallow\ndiscovery, producing from the Marg Tex 35 formation. This is the same zone as\nthat tested successfully at the Wilson discovery. The operator is BNP, a private\nTexas-based company.\n\nThe La Playa Deep discovery well was put online in December 2005. It has\nconsistently produced at a rate of over five mmcfd. To date, the well has\nproduced over two bcf of natural gas. In addition to the main zone, there are a\nfurther three shallower Mid Frio targets in this well. These were not objectives\nin the original discovery as they were not within the closure of the mapped\ntrap.\n\nPantheon is a 10% paying interest to earn approximately a 7.5% working interest\n('WI'). This equates to a one-third for one-quarter farm-in. This represents\nvery favourable terms relative to normal industry agreements for a farm-in to a\ndevelopment well. It should be noted that Pantheon will not have an interest in\nLa Playa Deep #1.\n\nThe well is scheduled to spud within two weeks according to the Operator. It is\nscheduled to take 30 days to drill on a trouble-free basis and has a planned\ntotal depth of 10,500 feet. A successful development well would be easily\nconnected to the sales grid as the well is being drilled from an existing site.\nThe gross cost to drill and complete is US $5....