Pantheon Resources plc Regulatory News (PANR)

10 Aug 2006 07:00

Pantheon Resources PLC10 August 2006 PANTHEON RESOURCES PLC Natural Gas Encountered at Zebu Prospect The Board of Pantheon Resources plc ("Pantheon") is pleased to announce that theZebu #1 exploration well has encountered natural gas in both its primary andsecondary objectives. The Zebu #1 well was drilled to test a primary 3-D seismicamplitude anomaly indicated at 3,750 feet and a secondary objective in a deepersection at 4,280feet. Electric logs have now confirmed the presence of natural gas pay in the primaryobjective from 3750ft to 3758ft and also in a deeper sand from 4280ft to 4292ft.As a result of the positive log confirmation, the decision has been made tocomplete the well for production testing. Production testing and the reportingof natural gas flow rates should occur in the coming weeks. Zebu #1 was the first well to be drilled on Project Wharton, a farm-in concludedin June 2006. The Zebu discovery is on trend with numerous other prolificshallow Frio/Miocene producers in the immediate vicinity that have producedseveral billion cubic feet ("bcf") of natural gas. Success at Zebu will lead to numerous additional drilling opportunities withinthe surrounding acreage which would represent a material reserve addition toPantheon. These are also regarded as low risk, ranging from 50% to 80%, withgood early cash flow generation potential. Pantheon's Chairman, Sue Graham said: "Pantheon is delighted to have drilled andmade a discovery with its first exploration well since company inception earlythis year. This discovery, Zebu, was made in Pantheon's new project area(Wharton County) which was acquired post-IPO. Pantheon is currently involved ina four well programme in this new project area. Based on the early successPantheon has achieved, activity may be increased. Pantheon has numerous drillingopportunities in and around Project Wharton. The successful production testingof Zebu will lead to immediate cash flow for Pantheon and turn the company froma pure exploration company to a producer as well. Pantheon is also drilling a high impact well at Padre Island, named Plum Deep.Plum Deep is regarded as having a higher risk/reward than Zebu. The most likelytarget size at Plum Deep is 161-293 bcf. The Zebu discovery, combined with thecurrent drilling at Plum Deep and on-going drilling in the Wharton area andPadre Island represents an exciting period for Pantheon." 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 0118 Oriel Securities Limited Scott Richardson Brown +44 20 7710 7600 This information is provided by RNS The company news service from the London Stock Exchange