Pantheon Resources PLC
04 June 2007
June 4, 2007
PANTHEON RESOURCES PLC
Highly Successful Initial Test Results on Wilson Prospect, Padre Island
• The Board of Pantheon Resources ('Pantheon') is pleased to announce
successful test results from the first zone in the Wilson well.
• This test resulted in a peak flow of 3.3 million cubic feet ('mmcfd') of
natural gas through a 10/64 inch choke. The well was shut in and the choke
size reduced to 8/64 inches. It was then flowed for 27 hours and achieved a
final rate of 1.8 mmcfd of natural gas, 3 barrels of oil per day and 56
barrels of water per day. Flow casing pressure was 6,007 psi.
• Although it remains at an early stage, the Operator has indicated that
once tied into the sales grid, this zone alone is capable of producing
around 2.5 mmcfd. The small choke size combined with the high pressure
regime provides confidence that with time this rate might be improved as
more reservoir data is collected.
• This is the first of four planned flow tests for the well. A further three
selected zones will be tested over the coming weeks. These zones lie within
a potential natural gas column of over 100 feet thick gross. Any success
with these zones will increase further the productive capability of the
well.
• The Operator has stated that if similar results are obtained from one or
more of the three, as yet untested, zones, it is possible that its pre-drill
reserve estimate of 21 billion cubic feet ('bcf') for Wilson will be
exceeded. This compares with pre-drill gross best estimate potential
reserves (previously described as 'P50 potential reserves') of 9 bcf as
assessed by Pantheon's independent technical adviser.
• Pantheon's April production on a gross basis was 79.6 thousand cubic feet
a day. This all arose from three fields in its Project Wharton area. Based
on the Operator's view of the potential from the first zone at Wilson alone,
this would increase Pantheon's net output over ten-fold
• The Kindee ST 949 #1 well on the Wilson Structure was spudded on 7
February 2007 (Texas, USA).
• Pantheon's working interest in Wilson is 31.77%, subject to final
documentation.
Pantheon's Chairman, Sue Graham said 'This successful initial test at Wilson
represents a major and material event for a small company like Pantheon and
builds on the exploratory success achieved at its Wharton Project. Pantheon has
now participated in eight exploration wells and achieved a commercial success
rate of over 62%. This represents a very pleasing result.
With only the initial result from Wilson, Pantheon may expect a significant
increase in cash flow over the coming months as it continues to grow organically
its portfolio of oil and natural gas properties in the on and near-shore Gulf of
Mexico region. Pantheon's conservative pre-drill expectation for recoverable
natural gas reserves at Wilson was 9 bcf. This was substantially lower than the
Operator's estimate of 21 bcf. However, as reported by the Operator, it appears
this well might deliver substantially higher reserves than even its estimate.
This now represents the potential for material upside for Pantheon.
The drilling at Padre Island has been challenging, especially after the drilling
of Plum. With several more zones to test at Wilson in this well, there are
reasonable expectations of higher natural gas flow rates. With strong US natural
gas prices and short lead times to production, the economics are very
attractive. The last two wells at Padre Island have also provided valuable data
on how to continue a more effective exploration effort which hopefully may lead
to improving operational results.
Apart from the current testing phase at Wilson, Pantheon is set to be active for
the rest of 2007. A potential natural gas zone remains to be tested at Plum
Deep. Further appraisal at Wilson is being considered. In addition, two wells
are scheduled on the company's Project Wharton acreage later this year. Later
this summer Pantheon also expects to spud the first well on its new project,
Nottoway Dome, located in Louisiana close to Baton Rouge. This structure has a
potential for 35 mmboe in the Oligocene section and the company has a 7.5%
working interest. In the event of success, this would also have a material
impact on Pantheon.'
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
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