12th Jan 2016 08:55
LONDON (Alliance News) - AIM-quoted Pantheon Resources PLC on Tuesday said it is contending with a blockage at the VOS#1 well in Tyler County, onshore east Texas, after a sudden decrease in gas production, oil production and flowing tubing pressure alerted the company to the obstruction.
The oil and gas exploration and production company, which has a 50% working interest in several projects in Tyler and Polk Counties in east Texas, said a bottom hole pressure build-up test to provide a "definitive analysis" of the type of blockage has already begun and will take a total of 72 hours.
Such a test is designed to allow for appropriate remedial action, which could take up to an additional seven days.
"Similar blockages are known to have occurred in the analogous, nearby Double A Wells field and were subsequently successfully remedied. Even at the reduced flow rates after the blockage, the well is still flowing commercial quantities of hydrocarbons. Without the blockage, our data suggests that this has the potential to be an exceptional well," Chief Executive Jay Cheatham said in a statement.
The VOS#1 well encountered 107 feet of net pay at a depth of about 15,150 feet, in the Eagle Ford sandstone, the primary target of the well.
Initially, there had been high rates of natural gas and 39 degree gravity oil at a flowing tubing pressure of 8,400 pounds per square inch, the company said.
According to Pantheon, the net pay and initial flow rates are consistent with a well exceeding an ultimate recovery of about three million barrels of oil equivalent.
"From the V0S#1 well, the net pay encountered and initial flow rates are very encouraging. Although we are disappointed that we cannot report production numbers at this time, I am confident we will be able to remedy the downhole issue, which is most likely heavy mud blocking perforations," Cheatham said.
Shares in Pantheon Resources were down 12% at 119.20 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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