Last checked at 17 May 2016 07:00
17 May 2016
Pantheon Resources plc
Operational Update
Spudding of the Vision Operating Blackstone Minerals #2H ("VOBM#2H") well and commencement of fracking operations at the VOS#1 well
Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted oil and gas exploration company with a 50% working interest in several projects in Tyler and Polk Counties, onshore East Texas, is pleased to provide the following operational update:
Spudding of VOBM#2H well, Polk County, onshore East Texas
Pantheon is pleased to announce that the Nabors F12 drill rig has spudded the VOBM#2H well on the JV's Polk County acreage. The VOBM#2H well is the first well of the JV's 2016 multi-well drilling programme, which follows the two successful discovery wells, VOBM#1 and VOS#1, drilled by the JV last year. VOBM#2H will be a horizontal development well, stepping out from the VOBM#1 discovery well and targeting the Eagleford sandstone at a depth of approximately 13,500 feet and at a lateral length of approximately 3,500ft.
Drilling operations are expected to take approximately 55-60 days on a trouble free basis and results from the well will be announced when drilling and, if appropriate, testing operations are complete.
Update on VOS#1 well, Tyler County, onshore East Texas
Operations are underway for the planned fracture stimulation procedure at VOS#1. Results from the procedure will be announced when completed, which is anticipated to be by the end of May 2016.
Update on VOBM#1 well, Polk County, onshore East Texas
As previously guided the operator is finalising negotiations for the processing and transportation of natural gas from the field. However, given current market dynamics, both Pantheon and the operator believe superior economics can be achieved by undertaking the gas processing component themselves. Given the lack of horizontal wells drilled in the region, it has been decided that the most prudent approach, particularly in a low gas price environment, is to first evaluate the results of the upcoming VOBM#2H well, prior to bringing VOBM#1 onstream, in order to better determine the optimum processing facility requirements for the field.
Jay Cheatham, CEO of Pantheon, stated,
"I am very pleased to announce the spudding of the first well in our fully funded 2016 drilling programme. The development well at VOBM#2H is significant in that it will be the first horizontal well on our Polk County acreage following the successful VOBM#1 vertical well.
"I am also pleased to note that fracture stimulation operations are due to commence at the VOS#1 well in Tyler County; given the extensive hydrocarbon bearing sandstone section discovered here, and commercial flow rate already achieved from this well; the results from this operation will be key to increasing the sustainable flow rates and de-risking the extensive aerial extent of the discovered resource."
Further information:
Pantheon Resources plc | +44 20 7484 5359 |
Jay Cheatham, CEO |
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Justin Hondris, Director, Finance and Corporate Development |
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Stifel Nicolaus Europe Limited (Nominated Adviser and broker) | +44 20 7710 7600 |
Callum Stewart |
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Ashton Clanfield |
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FTI Consulting | +44 20 3727 1000 |
Ed Westropp |
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Shannon Brushe |
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James Styles |
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For further information on Pantheon Resources plc, see the website at: www.pantheonresources.com
In accordance with the AIM Rules - Note for Mining and Oil & Gas Companies - June 2009, the information contained in this announcement has been reviewed and signed off by Jay Cheatham, a qualified Chemical & Petroleum Engineer, who has over 40 years' relevant experience within the sector.
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.