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Padre Island Leases Update
Padre Island Leases Update.
About this update from Pantheon Resources Plc
[{"type":"text","content":"\n Pantheon Resources PLC\n23 March 2007\n\n\nMarch 23, 2007\n\nPANTHEON RESOURCES PLC\n\nPadre Island Leases Update\n\nThe Board of Pantheon Resources plc ('Pantheon') notes that Golden Gate\nPetroleum Ltd ('GGP'), the Operator of the Padre Island Project, has issued its\ninterim results for the year. Within these, GGP has written-down costs on the\nPlum Deep prospect. Pantheon confirms that the Company will also write down\nthese costs with its interim results for the period to end December 2006. These\nare due to be announced by end March.\n\nThe Board further notes that the Operator has also written-off carried forward\nexpenditure on both the Murdoch and Kingsway prospects. The reason cited is\npending expiry of leases. Pantheon was unaware of this decision prior to release\nand has been actively seeking clarification of the reasons behind it.\n\nGGP has reverted that leases over both the Murdoch and Kingsway prospects are\ndue to expire in 2007. It also indicated that at this stage it is unlikely that\ndrilling will be initiated prior to the expiry dates. In this event, the leases\nwould automatically lapse. Further, while the Joint Venture may reapply for the\nleases in question, there is no guarantee that it would be successful.\n\nPantheon thus takes the view that it would be prudent also to adopt a similar\npolicy and write-down its carried forward expenditure on these leases. The\ncharge expected to be levied is estimated to amount to approximately US$280,000.\nThe Company stresses that this is an estimate and remains subject to\nconfirmation by the company's US accountants.\n\nSeparately, Pantheon confirms that analysis of the cores taken at Plum Deep has\nnot been completed. Initial examination established that the sands in the deep\nsection had very low permeability due primarily to the presence of calcite\ncement. GGP stated in its interim report that research continues to determine if\nthis is a localised occurrence or if it has regional implications that might\nimpact on the other deep prospects. It should be emphasised that no conclusions\nhave been reached as yet.\n\nThe next prospect scheduled to be drilled is Manzano where lease expiry is not\nuntil 2008.\n\n\nIn accordance with the AIM Rules, the information in this report has been\nreviewed and signed off by Mr Robert Rosenthal, (BSc Geology, MSc\nGeology)...