LONDON (Alliance News) - Pantheon Resources PLC said Tuesday it is holding discussions with potential partners for a farm-in for the company's Tyler and Polk County assets onshore Texas.
The company said the objective of the farm-in would be to provide funding for drilling operations in exchange for a working interest in the project.
In addition, Pantheon said it has exchanged contracts for the sale, distribution and processing of natural gas from the VOS1 well in the Tyler County with Enterprise Big Thicket Pipeline LLC. It now expects first gas to flow in mid-October.
"I am extremely pleased with the progress made in negotiating and agreeing terms to begin the system to sell gas and generate revenues in Tyler County. We were able to negotiate an agreement that allows us to sell untreated gas into the Enterprise system. That is a significant plus for Pantheon as we avoid the upfront capital expense for gas treatment," Chief Executive Jay Cheatham said.
Pantheon shares were trading up 7.4% at 16.64 pence each.
Pantheon Resources plc (PANR)