Business
Spudding of Zebu
Spudding of Zebu.
About this update from Pantheon Resources Plc
[{"type":"text","content":"\n Pantheon Resources PLC\n03 August 2006\n\nPANTHEON RESOURCES PLC\n\nFirst Well Spuds on Project Wharton Targeting Zebu Prospect\n\n• Pantheon's first well on Project Wharton spudded on July 31\n\n• Targeting the small Zebu prospect with potential reserves in a 0.5 to 1.6 \n billion cubic feet range\n\n• Well projected to take less than one month to drill on trouble-free basis\n\n• Good potential for early, tax efficient cash flow generation. Payback per \n well projected at less than 12 months\n\n• Low risk exploration complements the Padre Island drilling programme\n\n• Pantheon has now embarked on an aggressive exploration campaign with\n drilling of Zebu and Plum Deep underway\n\nThe Board of Pantheon Resources plc ('Pantheon') announces that it has been\ninformed by the operator, Everest Resource Company ('Everest'), that the Zebu #1\nwell spudded on July 31 2006. This well is located in Colorado County south\nTexas.\n\nThe Zebu #1 well is targeting a seismic anomaly at 3,575 feet. This primary\nobjective has a conservative reserve potential of 0.5 billion cubic feet ('bcf')\nand a high-side potential of 1.6 bcf. Zebu #1 also has additional potential to\nfind thinner Frio and Miocene reservoirs that do not produce seismic anomalies.\nAs the planned well depth is less than 5,000 feet, drilling time is scheduled to\nbe less than one month.\n\nThe Zebu prospect is on trend with prolific shallow producers. Shallow Frio and\nMiocene reservoirs in the immediate vicinity have produced as much as 7.9 bcf\nwith peak rates averaging 600 thousand cubic feet a day ('mcfd'). Everest has\ndrilled 14 exploratory wells in this area of Colorado County targeting Frio\nseismic anomalies. The Frio success rate has been 78.6% (11 out of 14). The\nZebu #1 well is targeting a trough anomaly like the successful wells.\n\nZebu #1 is the first well to be drilled on Project Wharton, a farm-in concluded\nwith Everest in June 2006. The initial obligation covers three prospects which\nare ready to drill. Pantheon is paying 12.5% to earn 9.375% interest in Zebu and\nwill pay 25% of the drilling costs to earn an 18.75% working interest in the\nremaining two; Dakota and Mohawk. A further farm-in prospect is being evaluated.\nThe expected total dry hole cost outlay is around US$400,000 and the successful\ncompleted total cost outlay is around ...