Welcome to Pantheon Resources
Pantheon Resources is an independent oil and gas exploration company incorporated in the UK. Our principal asset is a 50% working interest in four projects in Tyler and Polk Counties, East Texas where we will be drilling two potentially high reward exploration wells in 2015. CEO Jay Cheatham, a 40-year veteran of the oil industry, describes the company's acreage position as the "most exciting prospect I have been involved in during my industry career".
The primary target for the first well, which is expected to spud before the end of Q1 2015, is the Woodbine/Eagleford sandstone, a formation that produced one of the most productive discoveries in recent Texan history, the nearby Double A Wells field. Pantheon and its joint venture partner Vision Gas Resources LLC have spent three years completing a confidential study of the previously poorly understood formation in association with the independent Bureau of Economic Geology at the University of Texas at Austin.
The Woodbine/Eagleford formation is known to exist on our acreage, as a single well drilled into the formation before Pantheon joined the joint venture has already produced more than $30m in revenues. Although Pantheon has no economic interest in that earlier well, we do have a 50% interest in all future wells that are drilled by the joint venture.
The first of the two wells to be drilled this year, in Tyler County, has as a secondary target the shallower Austin Chalk formation, which was drilled from a nearby location in 2009 and flowed natural gas, condensate and black oil before being plugged and abandoned for mechanical reasons. The second of the two wells planned for 2015 will be drilled on a second location in neighbouring Polk County, close to the prolific Double A Wells field, and will again target the Woodbine/Eagleford sandstone.
Pantheon Resources has been listed on the AIM market in London since 2006. In October 2014 the company completed a $30 million placing to double its interest in its first project from 25% to 50% and to acquire in addition a 50% interest in three other areas identified by the extensive three-year geological study. The funding will also finance this year's drilling programme.
If the first two wells confirm our understanding of the Woodbine/Eagleford sandstone and the presence of sufficient hydrocarbons, it could open the way for early development of up to 300 million barrels of oil equivalent on the joint venture's acreage, according to independent geological consultant Art Berman.
Unlike recent onshore shale oil discoveries in the United States, the Eagleford sandstone formation can be developed without the need for either horizontal drilling or "fracking" (unconventional reservoir stimulus), both of which techniques add materially to development costs. As a result any discovery is expected to be economic at prices well below $45 a barrel. The project economics also benefit from being located very close to infrastructure and transportation links in East Texas.
CEO Jay Cheatham is a career oil industry veteran who spent 30 years at ARCO, latterly as President of ARCO Oil and Gas International. He answers questions about the company and its prospects in a regularly updated CEO Q & A on this website. A recent TV interview, recorded in December 2014, can also be viewed here.
Regular updates on the progress of the drilling programme will be provided once the first Tyler County well has been spudded. A contract for the drilling rig is expected to be signed shortly. You can keep in touch with the company's progress by signing up to our news feed or visiting the press release section of this site.