Business
Vision Rice University #1 - U
Vision Rice University #1 - U.
About this update from Pantheon Resources Plc
[{"type":"text","content":"\n RNS Number : 6774Y Pantheon Resources PLC 08 September 2009 \n \n\n\n\n\n\n\n\nPress release \n\n\nDate: 8 September 2009\n\n\n\n\n\n\nPantheon Resources plc ('Pantheon' or 'the Company'), the AIM-quoted oil and gas exploration company active in Louisiana and Texas, issues the following update:\n\n\nVision Rice University #1, Tyler County, East Texas (25% Working Interest)\n\nThe operator, Vision Resources LLC, has recommended that the Vision Rice University #1 well ('VRU#1') be plugged and abandoned solely for mechanical reasons. This decision was taken after the high pressure snubbing unit was unsuccessful in retrieving the stuck coiled tubing from the wellbore. \n\nDespite this decision, the overall prospectivity of the project remains undiminished. During the limited testing operations conducted, the VRU#1 well flowed natural gas, condensate and black oil. This has confirmed an extension of the adjacent Anadarko/Ergon field.\n\nThe difficulties encountered during drilling of this well were solely of a mechanical nature resulting from much higher than expected reservoir pressures and the unexpected presence of an 'unconsolidated rubble zone'. The presence of both of these features is considered positive for the overall project and should enhance the project's economics as follows:\n \n1. In Austin Chalk wells, higher pressure is generally regarded as indicating higher potential reserves and productivity. The reservoir pressures encountered in the VRU#1 well may lead to flow rates in the upper tier of regional Austin Chalk producers if repeated in future wells. This well was in fact engineered for the expectation of higher reservoir pressures than the offsetting wells. The actual pressures encountered, however, exceeded those levels. \n \n2. Unconsolidated rubble zones typically exhibit higher porosity and permeability. Together these should lead to enhanced recovery and flow rate per well if confirmed. It is possible that this rubble zone may extend across a significant portion of the acreage which, if confirmed, should deliver a large area of upper tier targets with expected productive rates exceeding previous estimates. \n \n3. The presence of such a rubble zone may also lead...