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LONDON (Alliance News) - Pantheon Resources PLC on Wednesday said testing has been completed on the VOBM 1 well at the Polk County project in Texas and that oil has been found, sending its shares higher in early trade.
Shares in Pantheon were up 35% to 53.00 pence just after the open, the best performer in the AIM All-Share.
Pantheon, which owns a 50% working interest in the Polk project, said the well encountered 62 feet of net pay, at a depth of 14,200 feet, in the primary target.
The well flowed natural gas at a stabilised flow rate of 6,145 million cubic feet per day, with gross production equating to over 1,500 barrels of oil equivalent a day.
The initial flow rates and other testing data indicate the well has the potential to exceed the pre-drill prospective resource estimate, though a period of sustained production data will need to be secured before a definitive assessment is made.
"Today's news is truly a transformational event for Pantheon. The VOBM#1 well is expected to contribute valuable revenue and NPV to our company, particularly in the context of the exceptionally low operating costs expected for these wells," said Jay Cheatham, Pantheon's chief executive.
"However for me, the single most important outcome is that today's result confirms our understanding of the geology and interpretation of the seismic and gives validation to the incredibly detailed geological study undertaken with our partners over the past few years," he added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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