30th Dec 2016 08:05
LONDON (Alliance News) - Pantheon Resources PLC on Friday noted the discovery of two "potentially significant zones" at a project in Tyler County, East Texas, in which it owns a 50% working interest.
The oil and gas exploration and development company said drilling operations encountered two "separate, potentially significant, hydrocarbon-bearing zones" at the VOBM 4 well in Texas before reaching both the primary and secondary targets.
Pantheon said both the two formations will be tested before any further drilling to deeper depths is completed, and a lower cost workover rig has been brought in to carry out this testing.
The group said the shallower of the two zones is the Wilcox sandstone which has been a "prolific producing formation" elsewhere in Texas, while the second formation, in the "highly fractured" Navarro carbonate formation, required immediate casing to be set.
Pantheon said drilling operations to the "deeper, more highly pressured Austin Chalk and Eagle Ford sandstone formations have been halted until the potentially productive Wilcox formation can be tested".
Meanwhile at the VOBM 2 well in Polk County, East Texas, in which Pantheon holds a 58% working interest, the Nabors F-12 rig has been mobilised, and the well will be drilled as a vertical completion. The target location has been revised to take account of refined seismic interpretation following detailed analysis of the recently completed VOBM 3 well.
"I am extremely happy to report the presence of two new potentially significant zones, both of which are productive regionally and have the potential to be significant also for Pantheon," said Chief Executive Jay Cheatham.
"Drilling operations have been halted some 400 feet above the primary target formation, so the full potential of those lower zones remain. These two new zones have not been factored into any resource estimates, and if successful, have the potential to further add to the potential of our very exciting acreage position," Cheatham added.
Shares in Pantheon Resources were untraded shortly after market open Friday, last closing at 69.60 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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