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- Pantheon's strategy is to focus initially on hydrocarbon exploration and production onshore or near shore in the Gulf of Mexico.
- Pantheon's initial asset was a 25% working interest in a joint venture within the Padre Island Project ("PI Project") Area.
- Since the company's initial public offering two wells have been drilled on the PI Project Area.
- The first well in the drilling programme, Plum Deep, has been plugged and abandoned as non-commercial in the deeper horizons.
- The second well, Wilson, was drilled to investigate a shallower target in the Upper Frio system.
- The primary target is commercial.
- The Wilson well (part of the PI project) was brought on-stream on 10 September, 2007 at an initial rate of 2.5 million cubic feet a day ("mmcfd") gross. It is currently producing around 1 mmcfd.
- A second development project has been added to Pantheon's portfolio through a farm-in to the Dunn Deep #2 well. This was a development well offsetting the Dunn Deep #1 discovery. Pantheon has a 7.5% working interest in Dunn Deep #2.
- This was confirmed as successful on 7 September, 2007. It commenced production on September 17 less than two weeks from discovery. Initial production was 3.8 mmcfd. Current production is around 4.0 mmcfd.
- Although located on Padre Island, Dunn Deep is separate from the Padre Island Joint Venture. It is a shallow discovery, producing from the Marg Tex 35 formation. This is the same zone that tested successfully at the Wilson discovery.
- Pantheon has a high-impact project through its farm-in to the South Louisiana venture in Louisiana, south-west of Baton Rouge.
- The first well drilled on the Nottoway prospect commenced drilling on 12 October, 2007. The well was abandoned for mechanical reasons after the drill pipe stuck twice.
- A second well is contemplated in 2009.
- The second project Point Clair was abandoned after non-commercial quantities of natural gas were found.
- A third high impact venture was added with farm-in to Bullseye close to existing production at the Laurel Ridge field.
- Two prospects are to be tested with one well, which was spudded in late April 2008.
- Gross potential reserves are estimated at 12.5 million barrels of oil and 33 bcf of natural gas.
- Pantheon has also expanded its operations by farming-into a natural gas exploration venture in Wharton County, south Texas, located broadly between Houston and Corpus Christi.
- This project provides Pantheon with low risk/reward plays to balance its higher risk/reward plays.
- Individual prospects are of an order of magnitude lower in terms of estimated size and of lower risk. Reserves estimates per well range from 0.5 to 4.0 billion cubic feet ("bcf"). Exploration risk is regarded as low, with probability of success ranging from 50-80%.
- In May 2008, Pantheon added a significant East Texas Venture to its portfolio. The Tyler County Austin Chalk/Woodbine project covers 25,000 acres in the Brookeland Field.
- This acreage offsets successful drilling by Anadarko and Ergon Oil & Gas. If successful this project has the potential for between 35 to 60 wells and might add significantly both to reserves and cash flow.
- Corporate overhead costs are being kept intentionally low to maximise leverage to shareholders in the event of drilling success.
- Recent drilling success, two developments and an increasing drilling programme on its expanding asset portfolio led the Company to seek to increase its management team. This will be achieved through key appointments.
- The first appointment was achieved by the appointment of Jay Cheatham as CEO in January 2008.
- Pantheon intends to manage carefully its risk and enhance the probability of success through holding small working interests (10-25 per cent.) and partnering with experienced operators.
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