2nd Jan 2007 07:08
Pantheon Resources PLC02 January 2007 January 2, 2007 PANTHEON RESOURCES PLC Aggressive Exploration Campaign Continues on Project Wharton • Pantheon boosting its aggressive exploration campaign on Project Wharton. • Two new exploration prospects targeted; Baptist and Kant. • Kant #1 well spudded on December 29, 2006 with potential reserves estimated in a 0.25 to 2.0 billion cubic feet range. • Initial success rate on Project Wharton at 75% • Further three wells in and around recent discoveries are currently scheduled for 2007. • Project Wharton now producing natural gas from two wells with third due on-stream shortly • This represents an important income stream for Pantheon with attractive near term financial returns. The Board of Pantheon Resources plc ("Pantheon") announces that it has beeninformed by the operator, Everest Resource Company ("Everest"), that the Kant #1well spudded on December 29, 2006. This well is located in Colorado County,south Texas. The Kant #1 well is testing is testing a large Frio seismic amplitude anomaly at3,240 feet ("ft"). This anomaly covers 100 acres and was located using3D-seismic. The primary objective being targeted by the Kant #1 well has aconservative reserve potential of 0.25 billion cubic feet ("bcf") and a highside reserve potential of 2.0 bcf. The Kant anomaly is comparable to anomaliesassociated with productive reservoirs nearby. Kant #1 also has additionalpotential to find thinner Frio/Miocene reservoirs that do not produce seismicanomalies. These would boost high side reserve potential in the event ofsuccess. The Kant objective sits in a favourable structural position. It appears to be ona regional high in the middle of a trend of prolific shallow Frio/Mioceneproduction. This combination of structural high and high quality amplitudeanomaly makes a very attractive drilling target. Kant #1 is the fifth well to be drilled on Project Wharton, a farm-in concludedwith Everest in June 2006. Pantheon is paying 25% of the drilling costs to earnan 18.75% working interest in Kant. In the event of success, there is easyaccess to infrastructure. Since its initial farm-into three projects in June 2006, Pantheon has farmedinto three more prospects and drilled four wells on Project Wharton. Pantheon isnow producing from two natural gas fields, Zebu and Mohawk. A third, Caddo, isscheduled to be commissioned shortly. When combined together, these fields willmake up an attractive and growing income stream for the company. This increasingnatural gas production occurs at a time of improved US natural gas prices. Itrepresents an important income stream for a small company such as Pantheon withattractive near term financial returns. This initial drilling campaign has delivered effectively a 75% success rate.This has provided sufficient confidence to boost exploration in the ProjectWharton area. Apart from Kant #1, Pantheon has also agreed to drill anotherexploration well, Baptist, over the coming months. A further three wells in andaround the recent discoveries are currently scheduled for 2007. As these are notsubject to the farm-in terms, they would have a higher value to Pantheon, ifsuccessful. The current three discoveries, combined with the increasedexploration efforts, hopefully will yield higher natural gas production in 2007. The current interests and status of all prospects in which Pantheon has aninterest are shown in table 1 Table 1: Project Wharton and Pantheon's Interests Prospect Pantheon Working Interest Status Zebu #1 9.375% ProducingCaddo #1 18.75% Due on-stream early 2007Dakota #1 18.75% P&A non-commercial showsMohawk #1 18.75% ProducingBaptist #1 11.50% Drilling scheduled for 1Q 2007Kant #1 18.75% Drilling underway Source: Everest Resource Company Project Wharton provides Pantheon with low risk plays to balance the higher risk/reward plays at the PI Project Area. Overall exploration risk for theProject Wharton prospects is regarded as low, ranging from 50% to 80%. Thiscompares with 15% to 36% for the deep JV of the PI Project Area. 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 Plc Sue Graham, Chairman +44 20 7379 0118 Oriel Securities Limited Scott Richardson Brown +44 20 7710 7600 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Pantheon Resources plc