Pantheon Resources PLC
10 August 2006
PANTHEON RESOURCES PLC
Natural Gas Encountered at Zebu Prospect
The Board of Pantheon Resources plc ('Pantheon') is pleased to announce that the
Zebu #1 exploration well has encountered natural gas in both its primary and
secondary objectives. The Zebu #1 well was drilled to test a primary 3-D seismic
amplitude anomaly indicated at 3,750 feet and a secondary objective in a deeper
section at 4,280feet.
Electric logs have now confirmed the presence of natural gas pay in the primary
objective from 3750ft to 3758ft and also in a deeper sand from 4280ft to 4292ft.
As a result of the positive log confirmation, the decision has been made to
complete the well for production testing. Production testing and the reporting
of natural gas flow rates should occur in the coming weeks.
Zebu #1 was the first well to be drilled on Project Wharton, a farm-in concluded
in June 2006. The Zebu discovery is on trend with numerous other prolific
shallow Frio/Miocene producers in the immediate vicinity that have produced
several billion cubic feet ('bcf') of natural gas.
Success at Zebu will lead to numerous additional drilling opportunities within
the surrounding acreage which would represent a material reserve addition to
Pantheon. These are also regarded as low risk, ranging from 50% to 80%, with
good early cash flow generation potential.
Pantheon's Chairman, Sue Graham said: 'Pantheon is delighted to have drilled and
made a discovery with its first exploration well since company inception early
this year. This discovery, Zebu, was made in Pantheon's new project area
(Wharton County) which was acquired post-IPO. Pantheon is currently involved in
a four well programme in this new project area. Based on the early success
Pantheon has achieved, activity may be increased. Pantheon has numerous drilling
opportunities in and around Project Wharton. The successful production testing
of Zebu will lead to immediate cash flow for Pantheon and turn the company from
a pure exploration company to a producer as well.
Pantheon is also drilling a high impact well at Padre Island, named Plum Deep.
Plum Deep is regarded as having a higher risk/reward than Zebu. The most likely
target size at Plum Deep is 161-293 bcf. The Zebu discovery, combined with the
current drilling at Plum Deep and on-going drilling in the Wharton area and
Padre Island represents an exciting period for 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