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 will be drilling two potentially high reward exploration/exploitation 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 is the Woodbine/Eagleford sandstone, a formation that produced one of the most productive onshore 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 first well will be in Polk County, close to the prolific Double A Wells field, which has been producing since the mid-1980s. The second well will be in neighbouring Tyler County and 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 Woodbine/Eagleford formation is already 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 $30 million in revenues. Although Pantheon has no economic interest in the earlier Tyler County well, we do have a 50% interest in all future wells that are drilled by the joint venture.
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 will also finance the upcoming Polk and Tyler County wells referenced above.
If the first two wells confirms 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 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 per barrel of oil equivalent.
CEO Jay Cheatham is a career oil industry veteran who spent 30 years at ARCO, latterly as President of ARCO Oil and Gas International. A recent TV interview, recorded on 2 June 2015, can be viewed at left of this page.
A two-well contract for the drilling rig was signed in May 2015. The first well was spudded on 26th July 2015 and is expected to take around 45-50 days to complete on a trouble free basis. No further announcements will be made until the drilling operations have been completed.. When it has finished drilling this well, the drilling rig which has been contracted by the joint venture for its two-well drilling programme will move immediately to the second site in Tyler county. 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.