30 Mar 2009 11:52
ο»Ώ
Pantheon Resources plc - Interim Results for the six months ended 31 December 2008
Pantheon Resources plc ("Pantheon" or the "Company"), the AIM-quoted oil and gas exploration company activeΒ onshoreΒ Gulf of Mexico,Β today announces itsΒ interimΒ results for the period endedΒ 31 DecemberΒ 2008.Β
A full copy of the results will be available for access on the company's website atΒ www.pantheonresources.com
KEY POINTS
Continued implementation of Pantheon's new strategic plan under its CEO, Jay Cheatham.
Drilling underway on the Company's two major projects; Bullseye andΒ TylerΒ County.
Loss for the period of Β£0.235million compares with Β£0.860million for the corresponding period ended 31 December 2007.
Significant discovery announced with Jumonville #1 well on Bullseye prospect.Β
Gross production from this well has averaged around 500 barrels of oil equivalent per day since coming onstream.
Exploration continues at Bullseye as the Jumonville #2 well drills to a new deeper Cib Haz horizon.Β First of three main objectives, the Camerina, has been penetrated with oil and natural gas shows recorded on the mud logs.Β
First well spudded onΒ TylerΒ CountyΒ project. Well results to date have confirmed the technical case for the down-dip Austin Chalk play.Β Testing and production is now awaited.
Pantheon is highly encouraged for the play which comprises over 25,000 acres and has the potential for up to 60 wells.
Over the next few months further progress should be reported on the Company's two main projects.Β
Further information:
Pantheon Resources PLC
|
Jay Cheatham, CEO Justin Hondris, Director - Finance & Corporate Development |
+44 20 7484 5359 |
Oriel Securities Limited (Nominated Adviser)
|
Michael Shaw |
+44 20 7710 7600 |
Chairman's statement for the six months ending 31 December 2008
The last six months of 2008 witnessed the continued implementation of the Company's new strategic plan under the aegis of its Chief Executive Officer, Jay Cheatham. This period also saw the beginning of a critical phase for Pantheon as drilling either commenced or continued on the Company's two major projects; Bullseye andΒ TylerΒ County. All of this occurred against a backdrop of a severe decline in commodity prices as the effects of recession were observed in a sharp fall in demand.
At the time of the full year results for 2008 drilling was imminent on theΒ TylerΒ CountyΒ project inΒ East Texas. The long awaited first well on this project commenced on 12 November 2008 with the spudding of theΒ VisionΒ RiceΒ UniversityΒ #1 ("Rice University #1") well. In February 2009 the completion assembly was run.Β
Reservoir pressure was materially higher both than that seen in the Anadarko/Ergon wells located to the north and also to pre-drill estimates. This higher pressure caused the operator to complete the well with aΒ shorter lateral (horizontal) section than originally planned. However fractures were cut with commensurate natural gas shows.Β
Testing and production is now awaited to assess fully theΒ RiceΒ UniversityΒ #1 well. Critically the well results to date have confirmed the technical case for the down-dip Austin Chalk play inΒ TylerΒ County. This has positive implications for the remainder of the Joint Venture acreage position. Pantheon remains highly encouraged for the play which comprises more than 25,000 acres and has the potential for up to 60 wells.
Completion activities are continuing. A work-over rig is on location to repair a leak in the tubing assembly. Once accomplished, the next stage is the completion of the pipeline before starting production. This is expected in early April.
Prior to the release of the full year results for 2008, Pantheon announced a significant discovery for the company with the Jumonville #1 well on the Bullseye prospect. Gross production from this well has averaged around 500 barrels of oil equivalent per day ("boepd") since it was brought onstream in October 2008 and continues at this level.Β
The first delineation well on Bullseye, Acosta #1, penetrated both the Miogyp and Camerina zones but was too close to the old Acosta well bore in the permeable Miogyp to permit an adequate test.Β Β At present this well is suspended while the operator conducts feasibility studies on potential actions.
The second delineation well, Jumonville #2, commenced drilling on 25 December 2008. The purpose of this well is two-fold. First it is to act as a delineation/production well for the Camerina and Miogyp formations. Secondly it represents the initial test of the deeper, structurally larger Cib Haz formation which is the primary objective in this well. The Cib Haz interval is located below 13,000 feet and has a mean gross reserve size of 20 million barrels of oil equivalent ("mmboe").Β
The Jumonville # 2 well is currently at 12,339 feet and is setting a 7β inch liner prior to drilling ahead. The first of three main objectives, the Camerina, has been penetrated with oil and natural gas shows recorded on the mud logs. The results thus far are consistent with pre-drill estimates.Β
Success in the Cib Haz would be a major event for Pantheon. However, should the Cib Haz prove non-commercial it is expected that Jumonville #2 would be completed in the Miogyp formation which is the same producing formation as at Jumonville #1.
The last six months have been exceedingly challenging from a commodity price standpoint. Crude oil has plunged over 70% from highs of US$145 a barrel for West Texas Intermediate crude oil ("WTI") to US$40 a barrel. Natural gas suffered a similar fate falling to around US$4.00 per thousand cubic feet ("mcf") from US$14 per mcf. This collapse has had a major impact on all oil and gas company cash flows as well as services. Pantheon is no exception. However, it is critical to note that the Company's two main prospects, Bullseye andΒ TylerΒ County, remain economic in the current depressed environment.Β
Average production for the first half of the 2009 financial year wasΒ 50 boepd down from the 61 boepd for the equivalent period of the 2008 financial year.Β Existing output from theΒ Padre IslandΒ and Wharton ventures was augmented with new production from Jumonville#1 from October 2008. It is currently expected thatΒ RiceΒ UniversityΒ #1 should become a producer. Output fromΒ RiceΒ UniversityΒ #1 should augment both Pantheon's daily production and cash flow. This should also provide the Company with the basis for further growth.Β
Since Jay's stewardship of Pantheon commenced at the beginning of 2008, Pantheon has participated in six new test wells and entered into a new strategic phase. Over the next few months further progress should be reported on the Company's two main projects. The discoveries at Bullseye inΒ LouisianaΒ andΒ RiceΒ UniversityΒ #1 in Tyler County, Texas are yet to be fully delineated. Exploration continues at Bullseye as the Jumonville #2 well drills to a new deeper Cib Haz horizon. AtΒ TylerΒ County, theΒ RiceΒ UniversityΒ #1 well awaits testing and a gas pipeline. These should add value to shareholders and provide a sound footing for the Company's future development.
Operational Update
TylerΒ County,Β East TexasΒ
TheΒ RiceΒ UniversityΒ #1 well has been completed by running a slotted liner into the bottom portion of the well. Drilling was halted when a gas kick was encountered at 15,292 feet measured depth and the mud weight to control the well exceeded the well bore parameters. At an estimated reservoir pressure of 12,500 psi this reservoir greatly exceeds that of the Anadarko/Ergon wells to the north and pre-drill expectations. Completion activities are continuing. A work-over rig is on location to repair a leak in the tubing assembly. Once accomplished, the next stage is the completion of the pipeline before starting production.Β
TheΒ RiceΒ UniversityΒ #1 well is the first in an initial programme of three wells targeting the Austin Chalk and Woodbine formations located in the Brookeland field inΒ TylerΒ County,Β East Texas. This venture covers 30,000 acres and is located immediately south of Anadarko Petroleum Corporation's and Ergon Oil and Gas's successful drilling, also inΒ TylerΒ County.Β
Success in this venture would prove up an extension to the Brookeland Field and may lead to a 30 to 60 well programme for Pantheon; essentially a development scheme for a new field. The Austin Chalk wells are completed horizontally and approximately 50% of all production is usually generated in the first year.Β
Bullseye
Jumonville # 2 is scheduled to drill through the Camerina and Miogyp formations. These two intervals will have logs and side wall cores to further the knowledge of these intervals. The primary objective is the Cib Haz interval below 13,000 feet. Total depth for the Jumonville # 2 well is planned for approximately 14,200 feet.
Jumonville # 2 well is currently at 12,339 feet and is setting a 7β inch liner prior to drilling ahead. The first of three primary objectives, the Camerina, has been penetrated with oil and gas shows recorded on the mud logs. The results thus far are consistent with the operator's pre-drill estimates.Β
The next interval to be penetrated by the Jumonville # 2 well will be the Miogyp Formation. The Miogyp objective is up-dip from the oil production in the Jumonville # 1 well and is expected to provide additional confirmation of pay thickness and distribution of this reservoir.Β
The primary target in the Jumonville # 2 well is the deeper Cib Haz reservoir which is contained in the same hydrocarbon trap as the shallower productive intervals. The Cib Haz Formation is an exploration target since it has yet to be tested. Based on 3D seismic, it appears to be several times larger than the Miogyp Formation.Β
Β
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2008
|
Β
|
Β
|
6 months ended 31 December 2008
|
6 months ended 31 December 2007
|
Year ended
30 June
2008
|
|
Β
|
Β
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
Β
|
Β
|
Β£
|
Β£
|
Β£
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Turnover
|
Β
|
297,141
|
171,640
|
784,240
|
|
Cost of sales
|
Β
|
(202,893)
|
(389,153)
|
(156,713)
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Gross (loss)/profit
|
Β
|
94,248
|
(217,513)
|
627,527
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Administrative expenses before share based payments and impairment losses
|
Β
|
Β
(363,227)
|
Β
(262,823)
|
Β
(582,196)
|
|
Share based payments
|
Β
|
(72,517)
|
(50,700)
|
(55,820)
|
|
Impairment of intangible assets
|
Β
|
(10,984)
|
(341,860)
|
(4,858,558)
|
|
Total administrative expenses
|
Β
|
(446,728)
|
(655,383)
|
(5,496,574)
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Operating loss
|
Β
|
(352,480)
|
(872,896)
|
(4,869,047)
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Finance revenue
|
Β
|
117,060
|
12,841
|
22,419
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Loss before taxation
|
Β
|
(235,420)
|
(860,055)
|
(4,846,628)
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Taxation
|
Β
|
-
|
-
|
-
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Loss for the period
|
Β
|
(235,420)
|
(860,055)
|
(4,846,628)
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Loss per ordinary share β basic and diluted
|
(note 2)
|
(0.6)p
|
(5.41)p
|
(26.01)p
|
All of the above amounts are in respect of continuing operations.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2008
Β
|
Β
|
Share
|
Share
|
Retained
|
Currency
|
Equity
|
Total
|
|
Β
|
capital
|
premium
|
earnings
|
reserve
|
reserve
|
Β
|
|
Β
|
Β£
|
Β£
|
Β£
|
Β£
|
Β£
|
Β£
|
|
Group
|
Β
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
At 30 June 2008
|
397,339
|
14,723,365
|
(10,281,176)
|
(241,650)
|
704,873
|
5,302,751
|
|
Net loss for the period
|
-
|
-
|
(235,420)
|
-
|
-
|
(235,420)
|
|
Foreign currency
|
-
|
-
|
-
|
1,479,217
|
-
|
1,479,217
|
|
Share based payment
|
-
|
-
|
-
|
-
|
23,550
|
23,550
|
|
Issue of Shares
|
1,033
|
48,967
|
-
|
-
|
-
|
50,000
|
|
At 31 December 2008
|
398,372
|
14,772,332
|
(10,516,596)
|
1,237,567
|
728,423
|
6,620,098
|
Β
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2008
|
Β
|
Β
|
31 December 2008
|
31 December
2007
|
30 June
2008
|
|
Β
|
Β
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
ASSETS
|
Β
|
Β£
|
Β£
|
Β£
|
|
Fixed assets
|
Β
|
Β
|
Β
|
Β
|
|
Intangible fixed assets (note 3)
|
Β
|
4,561,252
|
811,190
|
2,134,551
|
|
Tangible fixed assets (note 4)
|
Β
|
1,452,217
|
3,606,247
|
167,755
|
|
Β
|
Β
|
6,013,469
|
4,417,437
|
2,302,306
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Current assets
|
Β
|
Β
|
Β
|
Β
|
|
Trade and other receivables
|
Β
|
620,422
|
164,356
|
1,379,722
|
|
Cash and cash equivalents
|
Β
|
168,987
|
753,969
|
3,091,725
|
|
Β
|
Β
|
789,409
|
918,325
|
4,471,447
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
LIABILITIES
|
Β
|
Β
|
Β
|
Β
|
|
Creditors: amounts falling due within one year
|
Β
|
182,780
|
427,034
|
1,471,002
|
|
Net current assets
|
Β
|
606,629
|
491,291
|
3,000,445
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Total assets less liabilities
|
Β
|
6,620,098
|
4,908,728
|
5,302,751
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
EQUITY
|
Β
|
Β
|
Β
|
Β
|
|
Capital and reserves
|
Β
|
Β
|
Β
|
Β
|
|
Called up share capital
|
Β
|
398,372
|
170,524
|
397,339
|
|
Share premium account
|
Β
|
14,772,332
|
10,522,435
|
14,723.365
|
|
Retained losses
|
Β
|
(10,516,596)
|
(6,294,603)
|
(10,281,176)
|
|
Currency reserve
|
Β
|
1,237,567
|
(189,381)
|
(241,650)
|
|
Equity reserve
|
Β
|
728,423
|
699,753
|
704,873
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Shareholdersβ funds
|
Β
|
6,620,098
|
4,908,728
|
5,302,751
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
Β
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2008
|
Β
|
Β
|
6 months ended 31December
2008
|
6 months ended 31 December 2007
|
Year ended
30 June
2008
|
|
Β
|
Β
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
Β
|
Β
|
Β£
|
Β£
|
Β£
|
|
Net cash (outflow)/ inflow from operating activities
|
Β
|
546,740
|
(501,667)
|
(68,906)
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Cash flows from investing activities
|
Β
|
Β
|
Β
|
Β
|
|
Interest received
|
Β
|
117,060
|
12,841
|
22,419
|
|
Expenditure on tangible fixed assets
|
Β
|
(1,418,563)
|
(499)
|
(2,655)
|
|
Funds used for capital expenditure
|
Β
|
(3,648,225)
|
(1,059,989)
|
(2,478,605)
|
|
Net cash inflow from investing activities
|
Β
|
(4,949,728)
|
(1,047,647)
|
(2,458,841)
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Cash flows from financing activities
|
Β
|
Β
|
Β
|
Β
|
|
Proceeds from issue of shares
|
Β
|
1,033
|
900,000
|
4,349,274
|
|
Issue costs
|
Β
|
-
|
(61,313)
|
(169,859)
|
|
Net cash inflow from financing activities
|
Β
|
1,033
|
838,687
|
4,179,415
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Net decrease in cash and cash equivalents
|
Β
|
(4,401,955)
|
(710,627)
|
1,651,688
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Effect of foreign currency translation reserve
|
Β
|
1,479,217
|
17,164
|
(7,375)
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Cash and cash equivalents at the beginning of the period
|
Β
|
Β
3,091,725
|
Β
1,447,432
|
Β
1,447,432
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Cash and cash equivalents at the end of the period
|
Β
|
168,987
|
753,969
|
3,091,725
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
|
Β
|
Β
|
6 months ended 31 December 2008
|
6 months ended 31 December 2007
|
Year ended
30 June
2008
|
|
Β
|
Β
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
Β
|
Β
|
Β£
|
Β£
|
Β£
|
|
Operating loss
|
Β
|
(235,420)
|
(872,896)
|
(4,869,047)
|
|
Impairment
|
Β
|
10,983
|
341,860
|
4,858,558
|
|
Depreciation
|
Β
|
134,101
|
370,648
|
84,466
|
|
Cost of issuing shares and options
|
Β
|
72,517
|
50,700
|
55,820
|
|
Decrease/(increase) in trade and other receivables
|
Β
|
759,300
|
(95,307)
|
(223,656)
|
|
Increase/(decrease) in creditors
|
Β
|
(1,288,221)
|
(296,672)
|
24,953
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Net cash (outflow)/inflow from operating activities
|
Β
|
546,740
|
(501,667)
|
(68,906)
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
Β Β
|
Β
|
Β
|
6 months ended 31 December
2008
|
6 months ended 31 December
2007
|
Year ended
30 June
2008
|
|
Β
|
Β
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
Β
|
Β
|
Β£
|
Β£
|
Β£
|
|
Loss attributable to equity shareholders
|
Β
|
(235,419)
|
(860,055)
|
(4,846,628)
|
|
Weighted average of ordinary shares at period end
|
Β
|
39,816,234
|
15,886,568
|
18,635,255
|
|
Loss per share
|
Β
|
(0.6)p
|
(5.41)p
|
(26.01)p
|
|
Β
|
Β
|
Β
|
Β
|
Exploration & development
costs
|
|
Β
|
Β
|
Β
|
Β
|
Β£
|
|
Group
|
Β
|
Β
|
Β
|
Β
|
|
Cost:
|
Β
|
Β
|
Β
|
Β
|
|
At 30 June 2008
|
Β
|
Β
|
Β
|
11,286,217
|
|
Additions
Reclassification to Tangible Assets
|
Β
|
Β
|
Β
|
2,816,415
(1,149,182)
|
|
Exchange differences
|
Β
|
Β
|
Β
|
4,084,351
|
|
At 31 December 2008
|
Β
|
Β
|
Β
|
17,037,801
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Impairment:
|
Β
|
Β
|
Β
|
Β
|
|
At 30 June 2008
|
Β
|
Β
|
Β
|
9,151,666
|
|
Charge for period
|
Β
|
Β
|
Β
|
10,983
|
|
Exchange differences
|
Β
|
Β
|
Β
|
3,313,900
|
|
At 31 December 2008
|
Β
|
Β
|
Β
|
12,476,549
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Net book value:
|
Β
|
Β
|
Β
|
Β
|
|
At 31 December 2008
|
Β
|
Β
|
Β
|
4,561,252
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
At 30 June 2008
|
Β
|
Β
|
Β
|
2,134,551
|
|
Β
|
Β
|
Developed
Oil and gas
Properties
|
Office equipment
|
Total
|
|
Β
|
Β
|
Β£
|
Β£
|
Β£
|
|
Group
|
Β
|
Β
|
Β
|
Β
|
|
Cost:
|
Β
|
Β
|
Β
|
Β
|
|
At 30 June 2008
|
Β
|
268,823
|
5,424
|
274,247
|
|
Additions
|
Β
|
1,359,197
|
-
|
1,359,197
|
|
Exchange differences
|
Β
|
96,399
|
-
|
96,399
|
|
At 31 December 2008
|
Β
|
1,724,419
|
5,424
|
1,729,843
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Depreciation:
|
Β
|
Β
|
Β
|
Β
|
|
At 30 June 2008
|
Β
|
104,779
|
1,713
|
106,492
|
|
Charge for period
|
Β
|
133,425
|
676
|
134,101
|
|
Exchange differences
|
Β
|
37,033
|
-
|
37,033
|
|
At 31 December 2008
|
Β
|
275,237
|
2,389
|
277,626
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
Net book value:
|
Β
|
Β
|
Β
|
Β
|
|
At 31 December 2008
|
Β
|
1,449,182
|
3,035
|
1,452,217
|
|
Β
|
Β
|
Β
|
Β
|
Β
|
|
At 30 June 2008
|
Β
|
164,044
|
3,711
|
167,755
|
Β
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