Pantheon Well Test Success!

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(Photos: LOTM, AXT Board, Hotcopper.com)

After a difficult 12 months for many oil investors, and with many AIM valuations decimated, comes the following news from Pantheon Resources and which will add some cheer just in time for Christmas.

RNS Number : 6399D

Pantheon Resources PLC

28 October 2015

Successful completion of testing operations at the VOBM#1 well

The Board of Pantheon Resources plc (“Pantheon”), the AIM-quoted oil and gas exploration company with a 50% working interest in several projects in Tyler and Polk Counties, onshore East Texas, is pleased to provide the following operational update:

Successful completion of flow testing operations at VOBM#1 well, Polk County, onshore East Texas

Pantheon announces that the JV has successfully completed flow testing operations at the VOBM#1 well, in which Pantheon has a 50% working interest. The well encountered 62 feet of net pay, at a depth of c.14,200 feet, in the Eagle Ford sandstone, the primary target of the well.

The well flowed natural gas at a stabilised flow rate of 6,145 Mcfpd (with a calorific value of 1,100 BTU/cubic foot) and 504 bblpd oil on a 12/64ths choke with a flowing tubing pressure of 7,350 psi. Gross production from the VOBM#1 well equates to over 1,500 boepd.

Initial flow rates and other testing data indicate that the well has the potential to exceed the pre drill P50 Prospective Resource (Recoverable) estimate per well of 1.4MMboe, however it will take a period of sustained production data before a more definitive assessment can be made.  The well P50s and other estimates are directly comparable to those of the nearby Double A Wells field, which served as the analogue for the estimates.

Preparations are presently underway to lay pipeline for the transportation of natural gas from the well site to the nearby Indian Springs gas processing plant, owned by Enterprise Product Partners. Oil will be collected in tanks on site and trucked to nearby refineries. On start-up of production the well will be choked back and brought online slowly and carefully in order to preserve reservoir integrity, to minimise any possible damage and to manage well economics.

As this is the first well that the JV is operating in this area of Texas, the JV is required to obtain a number of standard environmental and procedural permissions prior to commencing sales. These permissions should take c.100 days to obtain and further updates will be provided as they become available.

Drilling update on VOS#1 well, Tyler County, onshore East Texas

Drilling operations continue at VOS#1 well, in which Pantheon has a 50% working interest, and results for this well will be announced when drilling and, if appropriate, testing operations are complete.

Jay Cheatham, CEO, said

“Today’s news is truly a transformational event for Pantheon. The VOBM#1 well is expected to contribute valuable revenue and NPV to our company, particularly in the context of the exceptionally low operating costs expected for these wells. However for me, the single most important outcome is that today’s result confirms our understanding of the geology and interpretation of the seismic and gives validation to the incredibly detailed geological study undertaken with our partners over the past few years.”

 –  Ends –

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After a difficult year in the oil business, many investors are looking to Pantheon Resources to deliver some fourth-quarter comfort. Flow testing results are due from the Polk County well next week and are expected to indicate a commercial discovery. The Tyler County results are due once drilling and flow testing are completed and are expected within weeks. There are 40 further conventional drilling locations on the Tyler County Austin Chalk acreage alone which have the potential to add hundreds of millions to the company valuation. This is an exciting project and is certainly the most interesting in my humble experience. For those of us who have suffered through the disappointments of the low oil price, Pantheon might just offer a degree of consolation.

LONDON (Alliance News) – Pantheon Resources PLC Thursday said it has begun flow testing to VOBM1 well in Polk County, Texas, under its joint venture with Vision Gas Resources LLC. The 50/50 joint venture has started the flow testing slightly later than originally planned due to “logistical issues”, including the weather and the lack of availability of a high-pressure well-head, it said in a statement. The test will take between 10 to 14 days to complete “on a trouble free basis” and the results will be announced shortly afterwards. The VOBM1 well was drilled at the end of July and targets the Eagleford/Woodbine sandstone at a depth of approximately 15,000 feet. The drilling of the VOS1 well, on the pairs other acreage in Tyler county in Texas, is still ongoing and the results will be announced once the flow testing on the VOBM1 well have been released, it said. By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance