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 drilled two high impact exploration wells in 2015 and successfully discovered the targeted Eagleford conventional sandstone reservoir horizons in both, independent locations.
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 is one of the most productive per acre onshore conventional 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 Woodbine/Eagle Ford sandstone and generated flow rates that appear 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 indicated the presence of another potentially significant reservoir in the Eagle Ford/Woodbine sandstone (announcement here).
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. In March 2016 the Company announced that it had successfully raised an additional $30million through an equity placing to fund an active development and appraisal drilling programme in 2016 and beyond. Preparations are presently underway for the commencement of drilling operations in the near future.
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. It is estimated
that up to 200 individual wells could be drilled on the JV acreage to exploit both the Eagle Ford sandstone and Austin Chalk formations, although this number could be lower for a number of reasons including if individual wells drain larger areas or should horizontal drilling be utilized. It is also possible that multiple wells could be drilled using the same location.
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.
Several TipTV video interviews with CEO Jay Cheatham, in which he discussed the company's upcoming drilling programme, recorded in June 2015, December 2015 and March 2016 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.
* In respect of one of these 3 prospects, "Prospect D”, the grantor of the underlying leases retains an option to participate on a ground floor basis in wells drilled on the underlying land or lands pooled with that land for up to a 25% working interest (proportionately reduced to the mineral interest of the grantor in the relevant well or unit). If exercised in full it could reduce Pantheons working interest in this individual prospect to 37.5%.