Pantheon Resources plc ("Pantheon") was formed in 2005 as an independent UK based oil and gas exploration company focused on hydrocarbon producing basins onshore or near shore the GoM (Gulf of Mexico). On 5 April 2006, Pantheon was admitted to AIM, having successfully raised £10m from a mix of quality institutional and high net worth private investors at a price of £1.00 per ordinary share.

Pantheon's initial focus was on the deep geological plays under and around Padre Island (PI), South Texas. Pantheon entered into a Farmout Agreement which provided the right to participate initially in six specific, defined exploration targets which were ready for drilling from a geological and geophysical perspective. These prospects were considered to be large, high quality natural gas plays in an under-explored deep section of the GoM.

In 2007, Pantheon expanded its exploration interests in the US Gulf of Mexico region. In May and July respectively the company farmed into two separate exploration ventures in South Louisiana.  In November 2007, Pantheon raised £0.90 million through a private placement in order to fund drilling in South Louisiana.  Pantheon is generating positive cash flow from its existing assets.

In May 2008 Pantheon announced a farm into a large Austin Chalk/Woodbine play in East Texas.  With this venture the Company shifted focus from high risk/high reward deep gas plays to a lower risk extension/development play. This venture is located in Tyler County, East Texas, north and east of Houston and comprises 25,000 acres in the Brookeland Field.  Drilling on this acreage is scheduled to begin in June 2008.  The initial target is the Austin Chalk which is the main producing horizon in the Brookeland Field.  The Pantheon acreage is just south of successful drilling by Anadarko Petroleum and Ergon Oil & Gas.  Pantheon has a 25% interest in this venture.

In association with the Tyler County Austin Chalk Venture, Pantheon announced a fundraising effort for £4.54 million through placing approximately 22.7 million shares at £0.20 per share.  These funds will be used for Tyler County drilling and general working capital.

Pantheon drilled its first well, the Plum Deep well on Padre Island which was completed in January 2007. Core analysis of the deepest three zones confirmed that the sands in the deep section have very low permeability. This is due to the presence of calcite cement. For Plum Deep, this meant that the deep reservoirs sampled were non-prospective.   The well was plugged and abandoned.

The second well, Wilson, also on Padre Island, was tested and a commercial discovery confirmed. The initial flow rate was 2.5 million cubic feet a day ("mmcfd").  Reserves cannot be estimated until more production data has been obtained.  Testing of two other zones was not completed adequately. This resulted from poor well conditions. Potential reserves in these other zones may be evaluated further in subsequent appraisal/development wells. These may add to the volumes already established. Timing of these additional well or wells is not known.

In June 2006, Pantheon expanded its operations by farming-into a natural gas exploration venture in Wharton County, south Texas, located broadly between Houston and Corpus Christi.  This venture is operated by Everest Resource Company ("Everest") which has a long and successful history in the Texas Gulf Coast Area. This farm-in was considered complementary in terms of risk to the high impact PI Project Area.

In March 2007, Pantheon was informed by the Operator of the PI Project Area of impending lease expiry over both the Murdoch and Kingsway prospects during 2007. Pantheon was also informed that drilling would not be initiated prior to the expiry dates leading to automatic lease expiry. As a result of the lease expiry, new data obtained from the Plum Deep well and changing commercial terms, Pantheon decided not to participate in any additional drilling on Padre Island.

In May 2007, Pantheon expanded its exploration interests in the US Gulf of Mexico region. The company farmed-into an oil and natural gas exploration venture in Iberville Parish, Louisiana, south of Baton Rouge. The South Louisiana venture covered two prospects operated by Petro Hunt LLC. Both of these prospects have been drilled. The first, Nottoway Dome, was abandoned for mechanical reasons after the drill pipe stuck in the hole twice. The second, Point Clair found non-commercial quantities of natural gas and was also P&A.

In July 2007, Pantheon announced a further farm-in in Louisiana. This oil and natural gas exploration venture is also located in Iberville Parish,. The farm-in covers one prospect, Bullseye, with leases totalling 1,700 net acres. The Bullseye prospect is testing deeper untested fault blocks on the crest of the Laurel Ridge field. Laurel Ridge is a "turtle" (inverted basin) feature discovered in 1944. The intention is to test two deeper geopressured targets with one vertical well. These have combined gross best estimate potential reserves of 12.5 million barrels of liquids and 33 bcf of natural gas. Pantheon is participating with a 15% working interest before completion.