21st May 2007 07:30
Pantheon Resources PLC21 May 2007 May 21, 2007 PANTHEON RESOURCES PLC New Venture Added to Pantheon's Portfolio in Gulf Coast Region • Pantheon expands activities in the U.S. Gulf Coast region • Entering Louisiana through farm-in to an oil and natural gas venture over Nottoway Dome • The project adds another high impact project to the portfolio. • It also has lower risk potential at Point Clair. • Operator of venture, Petro-Hunt, is highly experienced in region. • Two prospects are scheduled to be drilled, with first drilling expected to commence late-summer 2007 • Gross potential reserves for venture are estimated at 45 to 50 million boe • This new project is consistent with Pantheon's stated strategy to focus on hydrocarbon exploration onshore or near shore in the GoM Details of Farm-in The Board of Pantheon Resources plc ("Pantheon") announces that it has farmed-into an oil and natural gas exploration venture in Iberville Parish, Louisiana,south of Baton Rouge. This venture is operated by Petro-Hunt LLC ("Petro-Hunt")based in Dallas. PetroHunt has also farmed into this project with a 60% workinginterest ("WI"). Farm-in covers two prospects; Nottway Dome and Point Clair. These have combinedgross best estimate potential reserves (previously described as "P50 potentialreserves") of 45 to 50 million barrels of oil equivalent ("mmboe"). The projectcombines low risk prospects at Point Clair with high impact moderate risktargets at Nottway Dome. Pantheon is participating with a 7.5% working interest ("WI"), carrying thefarm-out companies for a 25% back-in after project payout ("BIAPPO"). All costswill be recovered by Pantheon prior to back-in by the farm-out partners and norevenues will be received by these companies until Pantheon attains payout. Inthe event of Pantheon electing to drill a second or subsequent well, the sameterms apply. If such drilling occurs prior to payout then costs would accrue andthe back-in deferred until all costs are recovered. There is a four well commitment on this project. However, Pantheon would be ableto withdraw from the project at any time without penalty. In the event of asuccess with the first well and subsequent withdrawal from the project, i.e.without drilling the second well of the commitment, then Pantheon would haveearned the acreage. This four well programme would combine higher rewardprospects with low risk smaller prospects. Prospects The first well to be drilled is scheduled to be a 15,000 feet test of NottwayDome, a salt dome feature. This was identified by a new 3D seismic survey shotin 2005. The anticipated spud date is expected to be in approximately 90 days,taking two months to drill. This structure has a potential for 35 mmboe in theOligocene section. Nottway Dome is located four miles east of the White Castle Dome field which hasproduced 95 mmbo and 125 bcf of natural gas. Although White Castle wasdiscovered in 1929, there has been deeper exploration activity in 2006. One wellwas completed in an Oligocene section at 14,440 feet. It is flowing at 900 bopdand 2.5 mmcfd. Nottway is located one mile west of the Laurel Ridge field. Laurel Ridge isanother salt feature discovered in 1944. In 2006, two new discoveries were madein the Micocene and Oligocene. Similar zones are expected to be present in theuntested Nottway Dome. The Point Clair project is a Miocene development play. This was also identifiedas a result of the 2005 Nottway Dome 3D seismic survey. The targets lie withinthe existing unitized portion of the Docyville and Laurel Ridge fields. As suchthey may be considered low risk in multiple targets. There is the potential for3.6 mmbo and 5.75 bcf natural gas in shallow, low risk close to PUD Miocenetargets. There is also another 4 mmbo and 3 bcf natural gas potential fromdeeper Oligocene targets. The cost of the first well is being finalised. However, it is estimated that thetotal expected total dry hole cost outlay is around US$500,000 and thesuccessful completed total cost outlay is around US$700,000. Pantheon is payingback-costs of just under US$0.45 million. Pantheon's Chairman, Sue Graham said "With the announcement of the Nottway Dome/Point Clair venture, Pantheon is demonstrating its commitment to build a companyfocussed on the Gulf of Mexico region. The addition of Nottway Dome/Point has adouble benefit to the Company. First, it adds another high impact project toPantheon's portfolio. Secondly, the new venture provides lower risk targets withPoint Clair. Pantheon continues to analyse further opportunities with the view to enhancingshareholder value and returns. These are in line with its stated strategy and inconjunction with established operators. Pantheon continues to seek to spread itsrisk and enhance the probability of success through holding small workinginterests (10-25%) across its exploration portfolio. Pantheon also re-iterates its intention of keeping its corporate overhead costsas low as possible by having very few full time staff at this early stage in itscorporate development. It is the Company's intention to increase its managementand staffing levels as the Company evolves" In accordance with the AIM Rules, the information in this report has beenreviewed and signed off by Mr Robert Rosenthal, (BSc Geology, MSc Geology),Technical Director at Pantheon Resources Plc, who has over 30 years relevantexperience within the sector. Contacts: Pantheon Resources PlcSue Graham, Chairman +44 20 7379 0118 Oriel Securities LimitedScott Richardson Brown +44 20 7710 7600 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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