29th Feb 2016 10:42
LONDON (Alliance News) - Pantheon Resources PLC said Monday it will focus on commercially exploiting its portfolio over coming years in order to take advantage of falling drilling costs in the oil and gas industry.
Pantheon said it was close to concluding arrangements for processing the gas production and extraction of natural gas liquids at a neraby natural gas processing plant in Polk Country, with which it has been negotiating. It said its VOBM#1 well at the Polk County site in Texas will be the first in its 2016 drilling programme.
Pantheon's joint venture in Tyler County has completed a diagnostic spinner survey to determine the flow contribution from the perforated intervals and to identity the optimal remediation procedure.
Pantheon said the survey confirmed the well, titled VOS#1 well, is a commercial discovery at current flow rates and that it can improve its flow rates through applying a standard fracture simulation. Pantheon said this procedure is currently being planned and will be completed after the necessary equipment and operating team have been sourced.
"The more we analyse the results of the VOS#1 well, the more confident we are that both it and the VOBM#1 well before it will prove to exceed our original estimates. With combined operating and capital costs forecast at below USD5.00 per barrel of oil and the prospect of near term cash flow from our first two successes, I have never been more certain about the future of this company," said Chief Executive Jay Cheatham.
Shares in Pantheon Resources were up 5.6% at 122.00 pence on Monday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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