Pantheon Resources plc Regulatory News (PANR)

9 Jan 2007 08:40

Pantheon Resources PLC09 January 2007 January 9, 2007 PANTHEON RESOURCES PLC Kant #1 Well Non-commercial The Board of Pantheon Resources plc ("Pantheon") announces that it has beeninformed by the operator, Everest Resource Company ("Everest"), that the Kant #1well reached a total depth ("TD) of 4,750 feet on January 6, 2007. A full suiteof electric logs was run. The results of the log interpretation indicated thepresence of hydrocarbons in the primary objective. However the well was deemednon-commercial due to low natural gas saturation and thin reservoir sands. Adecision was to plug and abandon ("P&A") the well as non-commercial. Pantheon plans to drill another exploration well, Baptist, in first quarter2007. A further three wells in and around the company's discoveries arecurrently scheduled for 2007. As these are not subject to the farm-in terms,they would have a higher value to Pantheon, if successful. Since its initial farm-into three projects in June 2006, Pantheon has farmedinto three more prospects and drilled four wells on Project Wharton. Pantheon isnow producing from two natural gas fields, Zebu and Mohawk. A third, Caddo, isscheduled to be commissioned shortly. When combined together, these fields willmake up an attractive and growing income stream for the company. This increasingnatural gas production occurs at a time of improved US natural gas prices. Itrepresents an important income stream for a small company such as Pantheon withattractive near term financial returns. The current interests and status of all prospects in which Pantheon has aninterest are shown in table 1 Table 1: Project Wharton and Pantheon's Interests Prospect Pantheon Working Interest Status Zebu #1 9.375% ProducingCaddo #1 18.75% Due on-stream early 2007Dakota #1 18.75% P&A non-commercial showsMohawk #1 18.75% ProducingBaptist #1 11.50% Drilling scheduled for 1Q 2007Kant #1 18.75% P&A non-commercial shows Source: Everest Resource Company Project Wharton provides Pantheon with low risk plays to balance the higher risk/reward plays at the PI Project Area. Overall exploration risk for the ProjectWharton prospects is regarded as low, ranging from 50% to 80%. This compareswith 15% to 36% for the deep JV of the PI Project Area. 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.Contacts: Pantheon Resources Plc Sue Graham, Chairman +44 20 7379 0118Oriel Securities LimitedScott Richardson Brown +44 20 7710 7600 This information is provided by RNS The company news service from the London Stock Exchange