3rd Dec 2015 08:16
LONDON (Alliance News) - Pantheon Resources PLC shares rose on Thursday after it said it has successfully drilled the VOS-1 well situated in Tyler County, Texas, in the US.
Pantheon shares were up 10% to 95.50 pence per share on Thursday morning.
Drilling and logging operations at the vertical well have been completed and the company said it will conduct a flow test using a lower cost workover rig which it will contract shortly. Pantheon's initial data from electric logs indicate there is a "potentially significant" reservoir in the Eagle Ford/Woodbine sandstone.
However, it did state the "significance" of the electric log data will not be known until the flow test has been completed.
"These are very exciting times for Pantheon, with potential from three zones in the VOS-1 well in Tyler County, which follow on from recent successful flow test results from our VOBM-1 well in nearby Polk County. Whilst encouraged by the log data so far, we stress that until such time as flow testing has been completed on VOS-1, it is not possible to quantify the significance of this well for our company," said Chief Executive Jay Cheatham.
The VOS-1 well was drilled to a total depth of 15,400 feet and the company has decided to complete it as a vertical well.
In addition to a potential discovery in the Eagle Ford/Woodbine sandstone, Pantheon encountered natural gas shows whilst drilling through the Austin Chalk formation, but said those gas shows will not be tested as part of the upcoming flow test.
Pantheon did not indicate if it planned on testing those gas shows in the Austin Chalk in the future.
By Joshua Warner; [email protected]; @JoshAlliance
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