10th Oct 2014 11:26
LONDON (Alliance News) - Pantheon Resources PLC Friday said its joint venture has completed the acquisition of leases over 57,009 net mineral acres in Polk and Tyler Counties, East Texas, following last month's placing in which the company raised GBP18.5 million before expenses.
In a statement, Pantheon Resources said the 57,009 net mineral acres equate to an undivided interest for the joint venture in 20,576 acres (50% net to Pantheon) in three new project areas named prospect A, prospects B+C and prospect D. In addition, Pantheon will have a 25% interest, with an option to acquire an additional 25% interest, in 36,433 acres in other leases.
Pantheon said it has paid USD15.5 million for its share of the acreage and certain associated back costs including seismic surveys, geological and geophysical interpretation and land work in Tyler and Polk counties.
The estimated Prospective P50 Resource (recoverable) net to Pantheon's working interest upon completion of the proposed land acquisitions, including the additional 25% interest in its existing acreage, is 150.5 million barrels of oil equivalent, according to the company.
Pantheon said the first well is proposed to be started late in the fourth quarter of 2014 or in the first quarter of 2015.
The net proceeds of last month's placing were earmarked by Pantheon to increase its working interest in its Kara Farms joint venture to 50% from 25%, achieved through a revised agreement with Vision. On September 30, the same day on which Pantheon informed the market of the placing, Pantheon said it would be able to buy a 50% working interest in oil and gas leases which Vision was in the process of acquiring in three new project areas in Tyler and Polk Counties and in other leases.
Pantheon shares were Friday quoted up 1.8% at 19.59 pence.
By Samuel Agini; [email protected]; @samuelagini
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