2nd Aug 2006 10:36
Pantheon Resources PLC02 August 2006 PANTHEON RESOURCES PLC First Well Spuds on Padre Island targeting Large Plum Deep Structure • Pantheon's first well commenced drilling on August 1 at Padre Island • Projected to take 65 days to drill on trouble-free basis • Targeting the large Plum Deep structure with best estimate reserves in a 161-293 bcf range • Initiates exciting 18 month exploration programme for Pantheon on Padre Island with at least four wells scheduled to be drilled • Three are considered to be high impact with potential for major reserve additions and early cash flow to Pantheon The Board of Pantheon Resources plc ("Pantheon") announces that it has beeninformed by the operator, Golden Gate Petroleum ("Golden Gate"), that the KindeeST 212 #1 well spudded on August 1 2006 at 20.30 hours Texas time. Proposedtotal vertical depth of the Kindee ST 212 #1 well is about 15,000 feet. The wellshould reach total depth in 65 days on a trouble free basis. Located on Padre Island, this well is targeting the large Plum Deep structure.Gross best estimate potential reserves (previously described as "P50 potentialreserves") have been assessed in a 161-293 billion cubic feet ("bcf") range. This well initiates an active drilling programme on the Padre Island JointVenture ("PIJV"). Pantheon expects to be involved in the drilling of at leastfour exploration wells over an 18 month period (see table 1). The exact timingand order of the drilling programme remain dependent on the receipt of finallocation approvals from the relevant authorities. Table 1: Pantheon Resources - Projected Drilling Programme Prospect/Well Target/Type Gross P50 Est. Start Pantheon Golden IB Daiwa BNP Reserves Date Resources Gate (bcf)**Plum Deep* Deep/exploration 161-293 1 August 2006 25% 37.5% 37.5% - Wilson* Shallow/exploration 5-10 September 25% 37.5% 37.5% - 2006Manzano* Deep/exploration 178-337 October 2006 25% 37.5% 37.5% - Murdock South* Deep/exploration 94-232 First qtr 25% 37.5% 37.5% - 2007Lemonseed* Deep/exploration 87-123 Second qtr 25% 22.5% 22.5% 30% 2007Kingsway* Deep/exploration 16-20 Second half 25% 37.5% 37.5% - 2007 *Operated by Golden Gate *\* This range is based on various studies conducted on the acreage includingGolden Gate and Pantheon's Independent Technical Adviser Plum Deep is expected to be the first of at least three exploration wellstargeted at the deep section over the next 18 months. Extensive evaluation hasconfirmed six mature high quality exploration targets of which Plum Deep,Manzano and Murdock have been identified as the three largest prospects. Each ofthe latter offers the potential for significant additional reserves and earlycash flow to Pantheon. The fourth prospect to be drilled in which Pantheon has an interest is Wilson,which is small and in a shallower horizon, see table 1. Although small, Wilsonrepresents an attractive target as, in the event of successful drilling, a wellmay be put on production quickly. This is due to the under-utilisedinfrastructure that exists on Padre Island. These prospects are all covered by 3D seismic. In the view of the Board ofPantheon, the deep JV of the PI Project Area is a moderate risk (POS 15% to36%), high reward exploration venture. It offers the potential, if successful,of major value accretion to the Company and its shareholders. 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:
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