Pantheon Resources plc Regulatory News (PANR)

23 Mar 2007 07:45

Pantheon Resources PLC23 March 2007 March 23, 2007 PANTHEON RESOURCES PLC Padre Island Leases Update The Board of Pantheon Resources plc ("Pantheon") notes that Golden GatePetroleum Ltd ("GGP"), the Operator of the Padre Island Project, has issued itsinterim results for the year. Within these, GGP has written-down costs on thePlum Deep prospect. Pantheon confirms that the Company will also write downthese costs with its interim results for the period to end December 2006. Theseare due to be announced by end March. The Board further notes that the Operator has also written-off carried forwardexpenditure on both the Murdoch and Kingsway prospects. The reason cited ispending expiry of leases. Pantheon was unaware of this decision prior to releaseand has been actively seeking clarification of the reasons behind it. GGP has reverted that leases over both the Murdoch and Kingsway prospects aredue to expire in 2007. It also indicated that at this stage it is unlikely thatdrilling will be initiated prior to the expiry dates. In this event, the leaseswould automatically lapse. Further, while the Joint Venture may reapply for theleases in question, there is no guarantee that it would be successful. Pantheon thus takes the view that it would be prudent also to adopt a similarpolicy and write-down its carried forward expenditure on these leases. Thecharge expected to be levied is estimated to amount to approximately US$280,000.The Company stresses that this is an estimate and remains subject toconfirmation by the company's US accountants. Separately, Pantheon confirms that analysis of the cores taken at Plum Deep hasnot been completed. Initial examination established that the sands in the deepsection had very low permeability due primarily to the presence of calcitecement. GGP stated in its interim report that research continues to determine ifthis is a localised occurrence or if it has regional implications that mightimpact on the other deep prospects. It should be emphasised that no conclusionshave been reached as yet. The next prospect scheduled to be drilled is Manzano where lease expiry is notuntil 2008. In accordance with the AIM Rules, the information in this report has beenreviewed and signed off by Mr Robert Rosenthal, (BSc Geology, MScGeology), Technical Director at Pantheon Resources Plc who has over 30 yearsrelevant experience within the sector. This information is provided by RNS The company news service from the London Stock Exchange