LONDON (Alliance News) - Pantheon Resources PLC said Monday spudding for a new three-well drilling programme should begin in May, as progress at its two wells in Tyler County and Polk County, Texas continue to progress.
The US-focused oil and gas company said the Nabors Rig F-12 has been contracted for the drilling of three consecutive wells, the first two of which will be horizontal developments and the third a step out appraisal well. The first two wells will be in Polk County, whilst the other will be drilled five miles west of the recent VOX#1 discovery well in Tyler County.
Preparations for drilling operations will commence as soon as weather conditions permit, Pantheon Resources said, noting that inclement weather has delayed the immediate mobilisation of the rig, but assuming conditions improve, the first well should be spudded in mid May.
Panethon Resources added preparations are well advanced for the planned fracture stimulation procedure at the VOS#1 well, intended to be completed in conjunction with the upcoming drilling programme. The company added that flow rates at the well, which Pantheon believed had been hit by permeability variations along the wellbore, should be materially improved by applying a standard fracture stimulation procedure.
"This is considered a relatively cost-effective and straightforward procedure in a vertical hole," Panethon added.
Pantheon also noted that arrangement for the processing and transportation of natural gas production from VOBM#1 well in Polk County with the preferred natural gas companies are now in the final stages of negotiations. Pantheon said commercial production from this well is estimated to begin in the second quarter of 2016, Pantheon said.
"Building upon the successes of the VOBM#1 and VOS#1 discovery wells completed in late 2015, we can now focus on drilling out and extending those prospects with expediency. Two of the wells are considered development wells and the third is a large step out which could have material implications for the company if successful," said Pantheon Chief Executive Jay Cheatham.
"The availability of nearby local infrastructure near to our prospects should enable future discoveries to be brought into production within a matter of weeks of completion, once permitting is obtained," Cheatham added.
Shares in Pantheon were down 3.5% at 149.58 pence on Monday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Pantheon Resources plc (PANR)