LONDON (Alliance News) - Pantheon Resources PLC said Monday that the analysis conducted on the east Texas onshore wells proved that the water production causing lower-than-expected production is "more likely" a result of frac operations.
The oil and gas exploration company had put its VOBM#5 well under test on March 30 after weather delays affected production.
Pantheon shares were trading 12% higher at 20.29 pence each.
The results of the analysis concluded that the large volume of produced water in the VOBM#5 well is "more likely" a result of frac operations interfering with a deeper water source, the company said.
Chief Executive Officer Jay Cheatham said the findings were "extremely good news" as they showed that the well is not water saturated.
Future operations will be conducted "carefully" to avoid communication with deeper water sources, Cheatham said.
He added: "I hope the conclusions of this independent analysis restores shareholder confidence in our play, which Pantheon and the operator are firmly committed to. Our issues have been operational, and we are being vigilant in doing everything possible to minimise such issues going forward."
Pantheon Resources plc (PANR)