Pantheon Resources plc Regulatory News (PANR)

7 Aug 2007 07:01

Pantheon Resources PLC07 August 2007 August 7, 2007 PANTHEON RESOURCES PLC Farm-in to Development Well at Padre Island • Pantheon expands involvement in proven shallow Padre Island • Farming-into development well on La Playa Deep • Well scheduled to spud by end August and take 30 days to drill • Existing La Playa Deep well consistently produced at over five mmcfd • Target similar to that tested successfully at Wilson • Terms very favourable by industry standards • This represents a significant and very low risk opportunity for Pantheon, particularly given the favourable terms • Pantheon now has two development projects in its portfolio to balance its high impact ventures Details of Farm-in The Board of Pantheon Resources plc ("Pantheon") announces that it hasfarmed-into an appraisal/development well on the Mid-Frio La Playa #1 naturalgas find ("La Playa Deep"). Although located on Padre Island, La Playa Deep isseparate from the Padre Island Joint Venture. La Playa Deep is a shallowdiscovery, producing from the Marg Tex 35 formation. This is the same zone asthat tested successfully at the Wilson discovery. The operator is BNP, a privateTexas-based company. The La Playa Deep discovery well was put online in December 2005. It hasconsistently produced at a rate of over five mmcfd. To date, the well hasproduced over two bcf of natural gas. In addition to the main zone, there are afurther three shallower Mid Frio targets in this well. These were not objectivesin the original discovery as they were not within the closure of the mappedtrap. Pantheon is a 10% paying interest to earn approximately a 7.5% working interest("WI"). This equates to a one-third for one-quarter farm-in. This representsvery favourable terms relative to normal industry agreements for a farm-in to adevelopment well. It should be noted that Pantheon will not have an interest inLa Playa Deep #1. The well is scheduled to spud within two weeks according to the Operator. It isscheduled to take 30 days to drill on a trouble-free basis and has a plannedtotal depth of 10,500 feet. A successful development well would be easilyconnected to the sales grid as the well is being drilled from an existing site.The gross cost to drill and complete is US $5.4 million. This equates to a costto PANR of US$0.54 million. 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. For further information on Pantheon Resources plc, see the website atwww.pantheonresources.com 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 Exchange