Pantheon Resources PLC Operational Update (1147Q)
04 June 2018 - 4:00PM
UK Regulatory
TIDMPANR
RNS Number : 1147Q
Pantheon Resources PLC
04 June 2018
4 June, 2018
Pantheon Resources plc
Operational Update
Pantheon Resources plc ("Pantheon" or "the Company"), the
AIM-quoted oil and gas exploration company with a 50% - 75% working
interest in several conventional project areas in Tyler and Polk
Counties, onshore East Texas, provides the following operational
update.
VOBM#5, Polk County (75% working interest) - independent
technical analysis completed
Following the announcement of the VOBM#5 well results on 9 April
2018, Pantheon appointed Sierra Hamilton, a leading independent oil
and gas consultancy to conduct a detailed technical analysis of the
well in order to better understand the cause of, and implications
of, the water production.
The results of the analysis concluded that the large volume of
produced water in the VOBM#5 well is not believed to be sourced
from the perforated intervals in the targeted Eagle Ford sandstone,
and is more likely a result of frac operations communicating with a
deeper water source below the perforations. Future wells will most
likely only perforate the upper portion of the Eagle Ford sandstone
and will be designed (in collaboration with third party experts) to
avoid possible communication with deeper water sources.
Encouragingly, the analysis also concluded that absent fracking,
the perforated intervals should have produced hydrocarbons and
water volumes comparable to analogue wells in the nearby Double A
Wells Field.
VOBM#1 sidetrack and future operations
Pantheon confirms that the operator has identified two
appropriate drill rigs for the planned sidetrack of the VOBM#1
well. Discussions are presently underway and aim (subject to
contracts and scheduling) for spudding as early as late July. The
original VOBM#1 well was tested at 1,500 boepd on a 12/64(th) inch
choke before production was subsequently impacted by collapsed
casing. The VOBM#1 sidetrack is considered to have a high
probability of success by the operator.
Pantheon also confirms that in Tyler County, negotiations are in
late stages for the processing and transportation of natural gas
for the VOS#1 and future Tyler County operations.
Jay Cheatham, CEO, said:
"This is extremely good news for Pantheon shareholders because
the analysis concludes that the Eagle Ford sandstone in our West AA
prospect is not water saturated, and that the water has likely been
introduced from a source below the perforations as a result of the
frac. The analysis of the VOBM#5 and other Polk County wells was a
very comprehensive undertaking, involving extensive analysis of
regional data which took considerable time to complete. The
analysis also concluded that 100% of the perforated intervals in
our wells were in fact hydrocarbon bearing pay zones and following
this analysis the consulting geologist Art Berman has confirmed his
assessment of potential P50 Prospective Resource of our project has
not changed, remaining at 301mmboe. Certainly, any future fracking
operations will be undertaken carefully to avoid possible
communication with deeper water sources, but we will carefully
consider this in well design and planning, and in this regard I am
also pleased to report that Pantheon and the operator have made a
concerted effort to improve our future operational capabilities
with some key appointments.
"I hope the conclusions of this independent analysis restores
shareholder confidence in our play, which Pantheon and the operator
are firmly committed to. Our issues have been operational, and we
are being vigilant in doing everything possible to minimise such
issues going forward."
-Ends -
Further information:
+44 20 7484
Pantheon Resources plc 5361
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate
Development
Stifel Nicolaus Europe Limited (Nominated +44 20 7710
Adviser and broker) 7600
Callum Stewart
Ashton Clanfield
Nicholas Rhodes
+44 20 3727
FTI Consulting 1000
Ed Westropp
James Styles
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.
The technical disclosure in this document complies with the
SPE/WPC standard.
The information contained within this RNS is considered to be
inside information prior to its release.
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.
Glossary
boepd barrels of oil equivalent per
day
frac fracture stimulation procedure
----------------------------------
mmboe million barrels of oil equivalent
----------------------------------
P50 Prospective Resource the best estimate of petroleum
which, on a given date, is
potentially recoverable from
undiscovered accumulations
----------------------------------
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END
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