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 prospects in Tyler and Polk Counties, East Texas where we have just announced a successful discovery with the first of two potentially high reward exploration/exploitation wells planned for 2015. The second well was spudded in September 2015, but has not yet been completed.
CEO Jay Cheatham, a 40-year veteran of the oil industry, describes the company's acreage position in East Texas as the "most exciting prospect I have been involved in during my industry career". He said that the flow rates achieved by the first well are “truly a transformational event for Pantheon”, one that opens the way for commercial development and potentially further discoveries on the company’s extensive acreage position.
The primary target of both wells is the Woodbine/Eagle Ford sandstone, a formation that produced one of the most productive onshore discoveries in recent Texan history, the nearby Double A Wells field. Before drilling Pantheon and its joint venture partner Vision Gas Resources LLC 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 first well, in Polk County, confirmed the presence of both oil and gas in the Woddbine/Eagle Ford sandstone and generated flow rates that are analogous to those of the Double A Wells field, which has been producing since the mid-1980s. (You can read the stock exchange announcement here). The second well, in neighbouring Tyler County, has, as a secondary target, after the Woodbine/Eagle Ford, the shallower Austin Chalk formation, which was the very formation drilled from a nearby location in 2009 and flowed natural gas, condensate and black oil before being plugged and abandoned for mechanical reasons.
Pantheon Resources has been quoted on the AIM market in London since 2006. In October 2014 the Company raised circa $30 million through an equity 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 has also financed the two wells in Polk and Tyler County.
If the second well provides further confirmation of 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, of which Pantheon has a 50% working interest, according to independent geological consultant Art Berman. We have identified up to 200 potential well sites on the acreage in which the joint venture has an interest.
Unlike recent onshore shale oil discoveries in the United States, the Eagle Ford 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 below $30 per barrel. The project economics also benefit from being located very close to infrastructure and transportation links in East Texas, with operating costs potentially as little as $1 to $2 per barrel of oil equivalent.
The second well in this year’s drilling programme was spudded in early September 2015 and the results will be announced in due course. A TV interview with CEO Jay Cheatham, recorded on 2 June 2015, can be viewed at the left of this page. Mr Cheatham is a career oil industry veteran who spent 30 years at ARCO, latterly as President of ARCO Oil and Gas International. 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. Photographs of the Polk Country drilling operations can be found in the Image Library.