Last checked at 12 Jan 2016 07:00
Press release | 12 January 2016 |
Pantheon Resources plc
VOS#1 well - Testing Update
Pantheon Resources plc ("the Company"), the AIM-quoted oil and gas exploration and production company with a 50% working interest in several projects in Tyler and Polk Counties, East Texas, announces the following operational update.
Update on flow testing operations at VOS#1 well, Tyler County, onshore East Texas
The VOS#1 well encountered 107 feet of net pay at a depth of c.15,150 feet, in the Eagle Ford sandstone, the primary target of the well. This is more than 70% greater than the net pay encountered in the recently completed VOBM#1 well in Polk County. The well initially flowed high rates of natural gas and 39 degree gravity oil at a flowing tubing pressure ("FTP") of 8,400 pounds per square inch. The net pay and initial flow rates are consistent with a well exceeding a PMean ultimate recovery of c.3 million barrels of oil equivalent.
During subsequent testing operations, all three producing parameters (gas production, oil production and FTP) decreased suddenly, indicating the presence of a blockage. Subsequent changes to the choke size at the surface over several days had no impact on either the FTP or production rates, confirming the likely presence of a blockage within the production interval at the perforations. The JV has subsequently decided to perform a bottom hole pressure build up test, which is estimated to take 72 hours and which has recently commenced. This will allow a definitive analysis of the type of blockage and allow for appropriate remedial action, which could take up to an additional seven days.
Jay Cheatham, CEO, said
"From the V0S#1 well, the net pay encountered and initial flow rates are very encouraging. Although we are disappointed that we cannot report production numbers at this time, I am confident we will be able to remedy the downhole issue, which is most likely heavy mud blocking perforations. Similar blockages are known to have occurred in the analogous, nearby Double A Wells field and were subsequently successfully remedied. Even at the reduced flow rates after the blockage, the well is still flowing commercial quantities of hydrocarbons. Without the blockage, our data suggests that this has the potential to be an exceptional well."
For further information on Pantheon Resources plc, see the website at: www.pantheonresources.com
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Further information:
Pantheon Resources plc | +44 20 7484 5359 |
Jay Cheatham, CEO Justin Hondris, Director, Finance and Corporate Development | |
Stifel Nicolaus Europe Limited (Nominated Adviser and broker) Michael Shaw Ashton Clanfield | +44 20 7710 7600 |
FTI Consulting Ed Westropp Shannon Brushe James Styles | +44 20 3727 1000 |
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.
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. The technical disclosure in this announcement complies with the SPE/WPC standard.
The mineral resource estimates presented by the Company have been prepared by Mr. Arthur E. Berman BA, M.S. (Geology), Director of Labyrinth Consulting Services Inc., who has over 30 years' experience as a geoscientist.